SDCL Energy Efficiency Income Trust expands into Singapore
CEP Staff • 2 October 2020
London-listed SDCL Energy Efficiency Income Trust (SEEIT) plc has struck its first deal in Singapore, acquiring a portfolio of six operational assets.
Full article here (paywalled): https://cleanenergypipeline.com/news/sdcl-energy-efficiency-income-trust-expands-into-singapore/
This investment in proven operational assets further diversifies SEEIT’s portfolio, in terms of geography, technology, counterparty and application.
LONDON: SDCL Energy Efficiency Income Trust has announced 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”.
SDCL Energy Efficiency Income Trust plc is the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Since IPO, SEEIT has made seven investments and commitments in a diversified portfolio of distributed generation and energy efficiency projects totalling c.£375m.
The projects are located in the UK, Europe and North America in broadly equal proportions and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of recycled energy and cogeneration projects in the United States and, most recently, investments and commitments in operational and construction assets in the UK.
https://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”.
Markuz Jaffe, 01 October 2020
SDCL Energy Efficiency Income Trust PLC – energy efficiency investor – Acquires first portfolio …
Dayo Laniyan, 1 October, 2020
SDCL Energy Efficiency Income Trust PLC – energy efficiency investor – Acquires first portfolio of energy efficiency projects in Singapore from Singapore Energy Efficiency Investments Pte Ltd for GBP2 million. Portfolio comprises six assets, including chillers and air compressors installed at the premises of five industrial counterparties. Remaining portfolio life is six years and ten months.
Current stock price: 109.50 pence
Year-to-date change: up 1.9%
SEEIT has entered into an agreement with Electric Vehicle Network (EVN) to acquire an initial 112 rapid and ultra-fast EV charging stations across the UK for up to £50m.
SEEIT is the first UK-listed investment company of its kind to invest exclusively in the energy efficiency sector.
The EV charging sites will be developed and funded by EVN to the point at which they are contracted and construction ready, at which stage they will be acquired by SEEIT.
Once operational, the EV charging sites will be contracted through 20-year, fixed price, CPI inflated Energy Service Agreements to charge point operators.
In addition to the initial 112 sites, EVN has plans to develop a further 380 EV charging sites, requiring an additional £150m in the next 36 months, for which SEEIT has a right of first negotiation.
Jonathan Maxwell, CEO of SDCL, said: “There is a growing need for charging infrastructure in the UK as we transition towards more efficient fuel choices that reduce harm to our environment. We identified EV charging infrastructure as a target area in our June 2020 Prospectus and are pleased to have this opportunity to invest.
“EVN’s unique business model offers CPOs charging infrastructure as a service. This fits our model of investing in availability-based services with strong counterparties. Project revenues will be generated from energy services agreements with predictable costs, presenting the opportunity for a stable and predictable investment for SEEIT and one we are delighted to add to our portfolio. This will also provide further diversification in terms of technology, counterparty and application.”
Watson Farley & Williams (“WFW”) has advised SDCL Energy Efficiency Income Trust plc (“SEEIT”) on its acquisition of an initial 112 rapid and ultra-fast EV charging stations across the UK from Electric Vehicle Network Limited (“EVN”) for a total consideration of up to £50m.
The sites, largely located in forecourts and car parks with large site owners, are expected to take between six and twelve weeks to build. In addition to the initial 112 sites, EVN has plans to develop a further circa 380 EV charging sites, requiring an additional circa £150m in the next 36 months, for which SEEIT has a right of first negotiation.
Founded in 2018, SEEIT is the first UK-listed investment company of its kind to invest exclusively in the energy efficiency sector. EVN is a dedicated EV charging infrastructure development company.
The WFW London team that advised SEEIT was led by Energy Partner Emmanuel Ninos, supported by Senior Associate John Rosmini who assisted on property matters, and Associate Tim Williams who handled corporate aspects of the transaction.
Emmanuel commented “This substantial investment in a large portfolio of rapid and ultra-fast EV charging stations demonstrates the demand for attractive investments in the UK EV sector. WFW has now acted on a number of innovative transactions in the EV sector across Europe, including France, Germany and the UK”.
