Octopus Renewables Infrastructure Trust (ORIT) has opted not to exercise its purchase option on 175MW of Spanish solar projects – originally agreed in 2020.
The London-listed renewables company said having “reassessed the projects on a risk-adjusted basis and taking into account the company’s approach to capital allocation, exiting the option at a value above the company’s holding value was a more attractive proposition than committing to the construction”.
ORIT said it has been refunded its initial deposit paid and has in addition negotiated a termination payment from the vendor. This has resulted in a net gain on the investment of approximately £3m (€3.5m) over the €2m initial deposit or approximately £1.5m over the £3.2m holding valuation of the option as at the third quarter of 2023.
Phil Austin, chairman of Octopus Renewables Infrastructure Trust, said: “Exiting this option demonstrates ORIT’s ability to remain flexible as market conditions change and reflects our disciplined approach to capital allocation, allowing us to capitalise on opportunities to enhance value for shareholders when the right deals arise.”
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