Schroders Greencoat to acquire c.£700m Toucan Energy portfolio - the largest operational solar portfolio traded in the UK
Toucan Energy’s solar portfolio, consisting of 53 operating solar farms in the UK, will be majority acquired by private markets funds managed by Schroders Greencoat, the specialist renewables manager of Schroders Capital.
With a combined capacity of 513.5 MWp across England, Wales, and Northern Ireland and powering the equivalent of approximately 184,000 homes*, the portfolio is the largest operational solar portfolio transacted in the UK to date with a value of circa. £700m.
Schroders Greencoat is the largest manager of operating solar farms in the UK** with 1.35 GWp of solar assets already under management. Schroders Greencoat’s extensive track record will benefit the Toucan Energy portfolio, and its specialist team of asset managers intend to harness the portfolio’s reliable generation of clean electricity and support the long-term financial stability of the assets.
The majority of the portfolio will be acquired by long-standing Schroders Greencoat managed funds, including Greencoat Solar II LP and Greencoat Renewable Income LP, as well as recently launched mandates. A significant portion is being acquired by six Local Government Pension Schemes: Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire Funds via Schroders Greencoat Wessex Gardens LP, a place-based and locally-focused renewable energy infrastructure fund established last year. Tokyo Century is acting as a co-investor in the acquisition.
Schroders Greencoat agreed to acquire the Toucan Energy portfolio following a competitive bidding process managed by the joint administrators of Toucan Energy Holdings 1 Limited at Interpath Advisory.
Lee Moscovitch, Partner at Schroders Greencoat, said:
“We are thrilled to have agreed to acquire the largest operational solar portfolio put to market in the UK. This is a major achievement for Schroders Greencoat, particularly given the size, complexity and number of stakeholders involved in the transaction.
“We will aim to deliver reliable returns for our investors via these assets, as they continue to provide a substantial contribution to the UK’s net zero strategy.
“I’d like to thank the joint administrators at Interpath Advisory for their management of a thorough due diligence process, which along with our own assessments, demonstrated the high quality of the underlying assets in the portfolio.”
Jim Tucker, Managing Director at Interpath Advisory and joint administrator of Toucan Energy Holdings 1 Limited, said:
“We are delighted to have reached this landmark agreement with Schroders Greencoat which will see this excellent solar portfolio move into new ownership, delivering optimum value and generating a significant return for the portfolio’s creditors.
“This was a highly competitive sales process, requiring substantial preparation, due in no small part to the fact that assets of this scale and quality rarely come to market. We look forward to the transaction completing in the coming weeks.”
RBC Capital Markets acted as exclusive financial adviser to Schroders Greencoat on the transaction. Schroders Greencoat’s advisory team included Eversheds Sutherland, Evergy and PwC.
The joint administrators at Interpath Advisory were supported by KPMG LLP (M&A), Herbert Smith Freehills LLP (Legal), Interpath Advisory (Financial & Tax), Cornwall Insight Ltd (Commercial), The Natural Power Consultants Limited (Technical), and significantly by Toucan’s management team, for which the joint administrators express their thanks.
Notes to editors
*Calculation based on 2700 kWh per average UK household.
**Based on Schroders Greencoat estimations.
For further information from Schroders Greencoat, please contact:
Andy Pearce, Head of Media Relations +44 20 7658 2203 andy.pearce@Schroders.com
Rachael Dowers, PR Manager +44 20 7658 2086 rachael.dowers@schroders.com
Justine Crestois, PR Executive +44 20 7658 5186 justine.crestois@schroders.com
For further information from Interpath Advisory, please contact:
Katy Broomhead, Head of Communications, Interpath Advisory
Email: katy.broomhead@interpathadvisory.com
Tel: 0161 529 8861 / 07824 537963
About Schroders Greencoat
Schroders Greencoat LLP, formerly Greencoat Capital LLP, is a specialist manager dedicated to the renewable energy infrastructure sector. With teams in London, Dublin, Frankfurt, Amsterdam, Copenhagen, Switzerland and Madrid, as well as in New York and Chicago, and around £9 billion under management*, Schroders Greencoat is one of the largest dedicated managers in Europe. It was founded in 2009 and currently has fund mandates with strategies investing into wind, solar and energy transition in the UK, Europe and the United States. In total, Schroders Greencoat manages over 300 renewable infrastructure assets with an aggregate net generation capacity of over 5.6 GW*.
For more information, please visit https://www.schrodersgreencoat.com.
* As of 30 June 2023
Schroders Capital
Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates. The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $86.7 billion (£68.2 billion; €79.5 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 30 June 2023 (including non-fee earning dry powder and in-house cross holdings)
Schroders plc
Schroders is a global investment management firm with £726.1 billion (€846.1 billion; $923.1 billion) assets under management, as at 30 June 2023. Established in 1804, Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £7 billion and over 6,100 employees across 38 locations. The founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.
Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private assets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.
Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.
Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.
About Interpath Advisory:
Interpath Advisory supports clients with the provision of financial advisory and restructuring services. Its fast-growing Advisory capability spans both transaction advisory and forensics, and boasts a broad spectrum of services including disputes, regulatory and compliance advisory, value creation, financial due diligence, corporate finance and debt advisory. The firm’s established restructuring capability has a heritage dating back over 50 years, and spans financial restructuring, contingency planning and formal restructuring and insolvency. The firm also offers a number of cross capability service lines including valuations, pensions, tax and data and technology. Interpath employs over 700 people, and has 15 offices across the UK, Ireland, BVI and Cayman Islands.