Gresham House Energy Storage Fund (LSE:GRID) has entered a long-term strategic partnership with Summit Transition Partners (STP), a joint venture between Sumitomo Corporation and Taiwan-based TPK Holdings.
STP, which the company says will bring equity funding and international energy expertise, will acquire 25% shareholdings in the project holding companies for the first three pipeline sites, and has exclusivity on two further projects.
"We are delighted to sign this agreement with Summit Transition Partners and deepen the relationship with Sumitomo and TPK; the anticipated transaction demonstrates GRID's continued ability to raise capital at a project level, despite GRID trading at a discount to NAV," John Leggate CBE, Chair of Gresham House Energy Storage Fund, said.
The signed Exclusivity Agreement covers 25% stakes in Cockenzie (240MW/480MWh), Monets Garden (57MW/114MWh) and Elland 2 (100MW/200MWh), with the majority of consideration payable at completion of execution-form transaction documents anticipated over the next week and a smaller proportion deferred to key construction milestones, and these three projects are due to start construction immediately.
STP also holds exclusivity on 25% positions in Lister Drive (57MW/114MWh) and Ocker Hill (240MW/480MWh) on similar economic terms, with those investments expected to conclude later after GRID completes its acquisitions and arranges financing.
