FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED

(“FGEN” or the “Company”)

Disposal of rooftop solar portfolio

FGEN, a leading listed investment company with a diversified portfolio of environmental infrastructure assets across the UK and mainland Europe, is pleased to announce that it has completed the sale of 100% of its portfolio of operational rooftop solar assets (the “Rooftop Portfolio“) to AtmosClear Investments for a total consideration of £21.2 million (the “Disposal“). A total of £20.5 million is payable upon completion (“Initial Proceeds“), with a further £0.7 million in deferred consideration linked to the satisfaction of certain post-completion obligations (“Deferred Consideration“). The Initial Proceeds represent a modest premium to the valuation as at 30 September 2024 with the potential for further upside from the Deferred Consideration. 

The Rooftop Portfolio comprises a portfolio of over 1,000 fully operational domestic rooftop, commercial rooftop and ground-mounted solar installations distributed across England, Scotland and Wales, and was acquired by FGEN in 2015. It is FGEN’s only solar rooftop investment and considered to be non-core to the wider FGEN portfolio.

The Disposal refines the portfolio, recognises a premium to NAV, and recycles capital from a lower returning part of the portfolio into a further reduction of debt in line with the Company’s Capital Allocation policy.

The disposal crystallises an IRR of 4.2% and a multiple on invested capital (MOIC) of 1.3x. It is the Company’s second divestment this year after the sale of interests in a portfolio of anaerobic digestion assets in August 2024 (10.9% IRR, 1.7x MOIC).

Following the Disposal, FGEN’s solar exposure will consist of 11 ground-mounted solar parks across 5 investments in England and Wales which make up approximately 13% of the FGEN portfolio by value.

Ed Warner, Chair of FGEN, said:

“We are pleased with this sales agreement which has provided us with substantial funds from a non-core, low yielding asset. Capital allocation remains a key priority for the Board and proceeds will be used to strengthen our balance sheet through a further reduction in debt.”