SDCL Energy Efficiency Income Trust (SEEIT) has sold its U.K. onsite solar portfolio, UU Solar, to UK Power Networks Services, the private networks business of UK Power Networks Group, for a consideration of £90.8 million ($112 million).
The agreed price represents a 4.5 percent premium to the company’s Sept. 30, 2023, valuation.
The UU Solar investment was made in mid-2022. UU Solar supplies substantially all the existing on-site renewable electricity through solar, wind, mini-hydro and other technologies for the U.K. water company United Utilities. The investment represented a long-term, contracted portfolio with an investment-grade counterparty that contributed to SEEIT’s portfolio construction and its objectives to secure income and preservation of capital.
Since the time of investment, financial markets have been characterized by higher interest rates and levels of inflation, which have increased the total return that SEEIT is seeking from its portfoli
