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.”

We interviewed the investment team behind the trust, who outlined the financial and operational highlights from the period, but also reaffirmed their confidence in FGEN’s investment strategy.