LONDON: ORIT has elected to terminate its option to acquire 175MW of ready-to-build solar projects in Spain.

ORIT originally entered into a conditional acquisition agreement over the sites in 2020, however, having reassessed the projects on a risk-adjusted basis and taking into account the Company’s approach to capital allocation, exiting the option at a value above the Company’s holding value was a more attractive proposition than committing to the construction.

ORIT has been refunded its initial deposit paid and has in addition negotiated a termination payment from the vendor. This has resulted in a net gain on the investment of approximately £3.0m over the €2.0m initial deposit or approximately £1.5m over the £3.2m holding valuation of the option at Q3 2023, equivalent to a positive NAV impact of approximately +0.3 pence per Ordinary Share compared with the valuation of the option at 30 September 2023.

Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented: “Exiting this option demonstrates ORIT’s ability to remain flexible as market conditions change and reflects our disciplined approach to capital allocation, allowing us to capitalise on opportunities to enhance value for shareholders when the right deals arise.”

ORIT proposes to merge with AERI to create a renewable energy giant