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The Energyst SEEIT expands with acquisition of energy efficiency projects in Singapore
General/ 01 October 2020https://theenergyst.com/seeit-expands-with-acquisition-of-energy-efficiency-projects-in-singapore/
SDCL Energy Efficiency Income Trust plc, a UK-listed investment company that invests exclusively in the energy efficiency sector, today announces the acquisition of its first portfolio of energy efficiency projects in Singapore from Singapore Energy Efficiency Investments Pte. Ltd. (‘SEEPL’) and associates for an equity cash consideration of £2 million.
The portfolio consists of six operating assets, including chillers and bespoke energy-efficient air compressors that are installed at the premises of five leading industrial counterparties in Singapore, including subsidiaries of large multinational institutions. The total remaining portfolio life is 6 years and 10 months.
This investment in proven operational assets further diversifies SEEIT’s portfolio, in terms of geography, technology, counterparty and application.
Importantly, the acquisition represents SEEIT’s first energy efficiency investment in Singapore and, together with SDCL’s presence in the region, provides a platform from which the Company can explore future opportunities in this and other attractive jurisdictions in the region.
The acquisition constitutes a smaller related party transaction, falling within the scope of Listing Rule 11.1.10R as the Company’s Investment Manager, Sustainable Development Capital LLP (SDCL) and its associates, have an interest in SEEPL. The Board of Directors of the Company took independent valuation advice when negotiating this acquisition. The acquisition has been funded through existing cash reserves and is expected to contribute positively to SEEIT’s total returns.
SDCL’s CEO, Jonathan Maxwell, said, “With this investment, SEEIT establishes a portfolio in Singapore from which it can scale up to address other opportunities in the country and the region. We are investing into the decarbonisation of manufacturing in the region, including cooling efficiency, where air conditioning and refrigeration management have been demonstrated to offer the largest and most cost-effective potential for greenhouse gas emission reductions”.