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Downing Renewables & Infrastructure Trust acquires 16-18 GWh Swedish Electricity Distributor
13/7/23
5 min
Renewable energy
News
We are pleased to announce that Downing Renewables & Infrastructure Trust (DORE) has acquired a Swedish Electricity Distribution System Operator, Blåsjön Nät AB (“Blåsjön”), for c.£7 million.
The Company has acquired 100% of the share capital in Blåsjön, a regulated electricity distributor, which delivers 16-18 GWh per annum of electricity through medium and low voltage lines to its c.1,500 domestic and business customers in Strömsund, northern Sweden.
This is DORE’s second acquisition in the grid and grid stability services sector, and further supports the Company’s strategy of constructing a diversified portfolio designed to increase the stability of revenues and consistency of income to shareholders. The acquisition will be funded through the Company’s revolving credit facility, under which drawings and commitments are now c.£18 million.
Blåsjön's grid network is 436km in length and comprises overhead lines, three primary and 161 secondary substations. Blåsjön operates a licensed monopoly in a highly regulated environment, generating consistent and predictable cashflows that are correlated to Swedish inflation and interest rates. Grid networks like this are operating businesses with very long life assets that are expected to operate and generate substantial yields for generations.
Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP, said: “The accretive acquisition of Blåsjön, highlights our continued ambition to further diversify DORE’s portfolio. By investing in long life assets like electricity distribution grids, the Company can access long term, inflation linked revenues that are not dependent on the sale of electricity in the wholesale market. We are excited by this and potential future investments that the Company can make in this sector.”
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We are pleased to announce that Downing Renewables & Infrastructure Trust (DORE) has acquired a Swedish Electricity Distribution System Operator, Blåsjön Nät AB (“Blåsjön”), for c.£7 million.
The Company has acquired 100% of the share capital in Blåsjön, a regulated electricity distributor, which delivers 16-18 GWh per annum of electricity through medium and low voltage lines to its c.1,500 domestic and business customers in Strömsund, northern Sweden.
This is DORE’s second acquisition in the grid and grid stability services sector, and further supports the Company’s strategy of constructing a diversified portfolio designed to increase the stability of revenues and consistency of income to shareholders. The acquisition will be funded through the Company’s revolving credit facility, under which drawings and commitments are now c.£18 million.
Blåsjön's grid network is 436km in length and comprises overhead lines, three primary and 161 secondary substations. Blåsjön operates a licensed monopoly in a highly regulated environment, generating consistent and predictable cashflows that are correlated to Swedish inflation and interest rates. Grid networks like this are operating businesses with very long life assets that are expected to operate and generate substantial yields for generations.
Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP, said: “The accretive acquisition of Blåsjön, highlights our continued ambition to further diversify DORE’s portfolio. By investing in long life assets like electricity distribution grids, the Company can access long term, inflation linked revenues that are not dependent on the sale of electricity in the wholesale market. We are excited by this and potential future investments that the Company can make in this sector.”
Share
We are pleased to announce that Downing Renewables & Infrastructure Trust (DORE) has acquired a Swedish Electricity Distribution System Operator, Blåsjön Nät AB (“Blåsjön”), for c.£7 million.
The Company has acquired 100% of the share capital in Blåsjön, a regulated electricity distributor, which delivers 16-18 GWh per annum of electricity through medium and low voltage lines to its c.1,500 domestic and business customers in Strömsund, northern Sweden.
This is DORE’s second acquisition in the grid and grid stability services sector, and further supports the Company’s strategy of constructing a diversified portfolio designed to increase the stability of revenues and consistency of income to shareholders. The acquisition will be funded through the Company’s revolving credit facility, under which drawings and commitments are now c.£18 million.
Blåsjön's grid network is 436km in length and comprises overhead lines, three primary and 161 secondary substations. Blåsjön operates a licensed monopoly in a highly regulated environment, generating consistent and predictable cashflows that are correlated to Swedish inflation and interest rates. Grid networks like this are operating businesses with very long life assets that are expected to operate and generate substantial yields for generations.
Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP, said: “The accretive acquisition of Blåsjön, highlights our continued ambition to further diversify DORE’s portfolio. By investing in long life assets like electricity distribution grids, the Company can access long term, inflation linked revenues that are not dependent on the sale of electricity in the wholesale market. We are excited by this and potential future investments that the Company can make in this sector.”
Share
We are pleased to announce that Downing Renewables & Infrastructure Trust (DORE) has acquired a Swedish Electricity Distribution System Operator, Blåsjön Nät AB (“Blåsjön”), for c.£7 million.
The Company has acquired 100% of the share capital in Blåsjön, a regulated electricity distributor, which delivers 16-18 GWh per annum of electricity through medium and low voltage lines to its c.1,500 domestic and business customers in Strömsund, northern Sweden.
This is DORE’s second acquisition in the grid and grid stability services sector, and further supports the Company’s strategy of constructing a diversified portfolio designed to increase the stability of revenues and consistency of income to shareholders. The acquisition will be funded through the Company’s revolving credit facility, under which drawings and commitments are now c.£18 million.
Blåsjön's grid network is 436km in length and comprises overhead lines, three primary and 161 secondary substations. Blåsjön operates a licensed monopoly in a highly regulated environment, generating consistent and predictable cashflows that are correlated to Swedish inflation and interest rates. Grid networks like this are operating businesses with very long life assets that are expected to operate and generate substantial yields for generations.
Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP, said: “The accretive acquisition of Blåsjön, highlights our continued ambition to further diversify DORE’s portfolio. By investing in long life assets like electricity distribution grids, the Company can access long term, inflation linked revenues that are not dependent on the sale of electricity in the wholesale market. We are excited by this and potential future investments that the Company can make in this sector.”
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Downing LLP does not provide advice or make personal recommendations and investors are strongly urged to seek independent advice before investing. Investments offered on this website carry a higher risk than many other types of investment and prospective investors should be aware that capital is at risk and the value of their investment may go down as well as up. Any investment should only be made on the basis of the relevant product literature and your attention is drawn to the risk, fees and taxation factors contained therein. Tax treatment depends on individual circumstances of each investor and may be subject to change in the future. Past performance is not a reliable indicator of future performance. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 545025). Registered in England No. OC341575. Registered Office: Downing, 10 Lower Thames Street, London, EC3R 6AF.
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