DORE completes on first acquisition
February 2, 2021
Downing is pleased to announce that Downing Renewables & Infrastructure Trust plc (DORE) has now completed the acquisition, previously announced on 21 December 2020, of a portfolio of eight operational hydropower plants (the "Portfolio") in central and southern Sweden.
The Portfolio was acquired from Fortum Sweden AB ("Fortum") for a purchase price of approximately €65 million on a debt and cash free basis and comprises eight hydropower plants across three different rivers in Sweden, with annual average production of 108 GWh. The Portfolio has an operating track record spanning more than five decades.
Hydropower is a key energy source in the drive towards 100% renewable energy in Sweden by 2040 and is a key sector focus for DORE. The sector provides predictable long-term cash flows from assets that have much longer lives than other renewable energy technologies such as wind and solar.
DORE anticipates that the Portfolio will take out leverage during the year which will reduce DORE’s equity in the Portfolio. Capital released would then be reinvested in the wider pipeline of opportunities available and further diversify the portfolio.