JLEN Environmental Assets Group Ltd Acquisition (3296Z)
14 September 2022 - 8:00AM
UK Regulatory
TIDMJLEN
RNS Number : 3296Z
JLEN Environmental Assets Group Ltd
14 September 2022
14 September 2022
JLEN Environmental Assets Group Limited
("JLEN" or the "Company")
Investment in a glasshouse construction project and supply of
heat and power from adjacent anaerobic digestion plant
JLEN, the listed environmental infrastructure fund, is pleased
to announce an investment of up to GBP26.7m into a glasshouse
project via a combination of a senior secured loan for the
construction of the glasshouse and a convertible loan and a
minority equity stake in the glasshouse operator to provide for
working capital. The investment offers further diversification for
the Company and is JLEN's first investment into the commercial
glasshouse controlled environment space.
The consented 2.1 hectare glasshouse will be built in the UK, in
proximity to an existing anaerobic digestion ("AD") plant owned by
JLEN, which will separately be upgraded to supply low carbon heat
and power to the glasshouse via a private wire. Waste heat from the
existing CHP engines will be captured and delivered by pipe and a
heat exchanger to the glasshouse. Wastage from the glasshouse
produce may also be returned to the digester, creating a circular
ecosystem. The glasshouse project will receive energy via the
private wire at a discount to the import market price and the AD
plant will benefit from the inflation-linked RHI regime and sell
electricity at a premium price versus exporting it to the grid
while also utilising otherwise wasted heat.
The advanced glasshouse, which is expected to commence
production in 2023, will be capable of growing a wide array of
different horticultural products, from consumable produce to cut
flowers. Its initial operator will focus on the lawful cultivation
of the heavily regulated tetrahydrocannabinol flower, conforming to
tightly monitored licence requirements for secure supply to
established UK-based pharmaceutical manufacturers.
This will generate new diversified revenue streams for JLEN
derived from glasshouses, whilst increasing revenues from an
existing asset.
Ed Warner, Chair of JLEN, said:
"We are happy to announce JLEN's first investment into a large
scale, high-spec glasshouse. We believe this is an attractive
opportunity for JLEN to enhance the value of one of its existing
assets, creating an integrated ecosystem whilst deploying capital
into the controlled environment infrastructure sector."
-ENDS-
For further information and enquiries, please contact:
Foresight Group
Chris Tann er
Chris Holmes +44(0) 20 3667 8100
Winterflood Securities Limited +44(0)20 3100 0000
Neil Langford
Chris Mills
SEC Newgate UK
Elisabeth Cowell Jlen@SecNewgate.co.uk
Axaule Shukanayeva +44(0)20 3757 6882
Max Richardson
About JLEN
JLEN's investment policy is to invest in a diversified portfolio
of Environmental Infrastructure. Environmental Infrastructure is
defined by the Company as infrastructure assets, projects and
asset-backed businesses that utilise natural or waste resources or
support more environmentally friendly approaches to economic
activity, support the transition to a low carbon economy or which
mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:
-- long-term, predictable cash flows, which may be wholly or
partially inflation-linked cash flows;
-- long-term contracts or stable and well-proven regulatory and
legal frameworks; or
-- well-established technologies, and demonstrable operational
performance
JLEN's aim is to provide investors with a sustainable,
progressive dividend per share, paid quarterly and to preserve the
capital value of the portfolio over the long term on a real basis.
The target dividend for the year to 31 March 2023 is 7.14 pence per
share(1) . The dividend is payable quarterly.
Further details of the Company can be found on its website
www.jlen.com
LEI: 213800JWJN54TFBMBI68
( 1) These are targets only and not profit forecasts. There can
be no assurance that these targets will be met or that the Company
will make any distributions at all.
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