5th Jun 2019 11:36
LONDON (Alliance News) - Gore Street Energy Storage Fund PLC on Wednesday said it intends to continue to grow and diversify its portfolio following a decline in net asset value in its most recently ended 15-month period.
Gore Street floated on the London Stock Exchange in May last year, after raising GBP30.6 million in its initial public offering.
In addition, the investment firm said it agreed to acquire a controlling interest in a 160 megawatts portfolio of projects. Two projects of 50 megawatts each are located in Northern Ireland and a further two projects of 30 megawatts each are located in the Republic of Ireland.
Gore Street said an estimated total funding required is GBP77 million for project construction, acquisition and capital expense.
In order to fund those projects, the company said it intends to raise up to GBP50 million through a share placing, subscription and intermediaries offer.
The company said it will issue 100 million shares at a price that will be no lower than the latest published net asset value per share.
The stock was trading 1.9% higher on Wednesday morning at 83.60 pence a share.
Gore Street said it has entered into an agreement with the NTMA for up to a GBP30 million investment. The fund said GBP5 million will be invested as part of the placing, with up to GBP25 million made available for a drawdown. However, Gore Street noted that NTMA's subscription is conditional on the company raising minimum GBP15 million through placing, offer and subscription.
Upon completion of the transaction, the company said it will secure an option to purchase a further 190 megawatts portfolio of energy storage projects in Ireland, bringing the total transaction to 350 megawatts.
"Gore Street is delighted to have been chosen for NTMA's investment commitment following a competitive review of funds focused on the energy storage asset class and this represents a transformational development for Gore Street," said Chief Executive Alex O'Cinneide.
"The investment in the Irish projects will represent one of Europe's largest energy storage acquisitions and one of the largest of its kind this year globally," added O'Cinneide.
Turning back to annual results, the company reported its annual results from incorporation, in mid-January 2018, to the end of March 2019.
NAV per share as at March 31 stood at 91.9p, down from 97.0p reported on September 30 last year. Gore Street's portfolio valuation at the end of March was GBP6.5 million, also lower than GBP8.0 million reported at the end of September 2018.
The fund declared a dividend of 1.0 pence per ordinary share for the three months to the end of March. During 2018, 2.0p per share interim dividend and 1.0p a share quarterly dividend were paid.
"The assets selected for the portfolio offer the potential for quality returns, with operational cashflows supporting the company's quarterly dividend targets," said O'Cinneide.
Looking forward, O'Cinneide said: "We look forward to continuing to grow and diversify our portfolio of energy storage assets in a structurally growing market."
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Gore Street En.