Foresight Environmental Infrastructure (FGEN) announced that it has completed the sale of 100% of its portfolio of operational rooftop solar assets to AtmosClear Investments for a total consideration of £21.2m. A total of £20.5m is payable upon completion, with a further £0.7m in deferred consideration linked to the satisfaction of certain post-completion obligations. 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.”

FGEN: Foresight Environmental Infrastructure streamlines portfolio with solar asset sale