Acquisition

RNS Number : 7136C

John Laing Environmental Assets Grp

30 June 2016

 

30 June 2016

JOHN LAING ENVIRONMENTAL ASSETS GROUP LIMITED

("JLEN" or the "Company")

 Acquisition of a UK onshore wind farm

JLEN is pleased to announce the acquisition of Dungavel Wind Farm from John Laing Group plc ("John Laing") for a cash consideration, including working capital, of £38.2 million.

Dungavel Wind Farm is located in South Lanarkshire, South-West Scotland and comprises 13 Vestas 2MW V80 turbines with a total generating capacity of 26MW and is accredited for 0.9 ROCs. The site has been operational since October 2015.

The acquisition was funded by a draw-down under the Company's £65 million revolving credit facility, and was agreed in accordance with the First Offer Agreement between John Laing and JLEN. It brings the total capacity of the renewable energy assets in the JLEN portfolio to 155 MW.

JLEN also notes the outcome of the referendum on the UK's membership of the EU. The Company does not expect any material change to its operations as a result of the UK exiting the EU, although the Board will continue to monitor political developments. JLEN generates over 99% of its revenues in the UK and its assets all have long term subsidy support under the UK's stable regulatory framework for renewables or benefit from long-term contracts with government bodies.

Richard Morse, Chairman of JLEN, said:

"We are pleased to announce the acquisition of the Dungavel Wind Farm, as we continue to grow the JLEN portfolio. UK environmental infrastructure projects are able to pay an attractive risk-adjusted yield in the current environment with good inflation linkage. The acquisition also demonstrates the continuing value of our First Offer Agreement with John Laing."

Ends

For Further Details Contact:

John Laing Capital Management Limited David Hardy Chris Tanner	020 7901 3559
Redleaf Communications Charlie Geller Sam Modlin	020 7382 4769

About JLEN

JLEN's investment policy is to invest in environmental infrastructure projects that have the benefit of long-term, predictable, wholly or partially inflation-linked cash flows supported by long-term contracts or stable regulatory frameworks.

Environmental Infrastructure is defined by the Company as infrastructure projects that utilise natural or waste resources or support more environmentally-friendly approaches to economic activity. This could involve the generation of renewable energy (including solar, wind, hydropower and biomass technologies), the supply and treatment of water, the treatment and processing of waste, and projects that promote energy efficiency.

Further details of the Company can be found on its website www.jlen.com

 

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