Business
Valuation and Realisation Plan for Renewables
Valuation and Realisation Plan for Renewables.
About this update from Hargreaves Services Plc
[{"type":"text","content":"\n\n\nHargreaves Services plc\n(\"Hargreaves\", the \"Company\", or the \"Group\")\n \nValuation and Realisation Plan for Renewable Energy Land Assets\n \nHargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, announces significant progress regarding its renewable energy land assets.\n \nStrategic Focus\nThe Group has remained focused on its strategy to create, deliver and realise value for shareholders. Over recent years progress has been made on the creation of value opportunities including identifying opportunities for renewable energy assets to be constructed on or accessed from some of the Group's land which has limited alternative development potential. The Board can now announce that it has identified clear opportunities for value realisation, as set out below:\n \nRenewable Asset Valuation and Realisation Plan\nA key focus over the last few years has been the identification of several thousand acres of the Group's land which is now under lease to third parties for the construction of wind farm as well as other renewable energy assets and the granting of access to third party wind farm projects. Collectively, these have the potential to generate over 700MW of clean electricity. The Group has rights to receive index linked ground rents from these assets, most of which are linked to the underlying price of the electricity they generate.\n \nThe first wind farm on our land became operational earlier this year at Dalquhandy. Similar land assets within the renewable land portfolio have increasing index linked rental income coming on stream over the next few years resulting in a growing and meaningful annual return to the Group. Most of these renewable energy land assets have planning permission and approved dates for grid connections, significantly de-risking the projected income profile.\n \nWe have recently commissioned the first independent valuation of these renewable energy assets by Jones Lang LaSalle Limited. This review has placed a Market Value Today* in the range of between £21.6m and £23.1m on these assets as at 30 June 2023 with a Market Value at Commissioning of Development (\"COD\")* expectation in the range of £27.2m to £28.9m for when the assets commence generation which is at various points over the period to Janua...