Gore Street Energy Storage Fund is eyeing changes that would allow it to invest a greater percentage of its assets into projects outside of the UK and Republic of Ireland.
The company is seeking shareholder approval for the amendment to its investment policy, which it said would allow it to take advantage of its investment manager’s “considerable” pipeline of energy storage opportunities in other markets. It follows the company making two investments into energy storage outside of the UK and Ireland in recent weeks, these being the acquisition of a portfolio of eight energy storage assets in Texas and the acquisition of a 90% stake in a 28MWh operational energy storage asset in Cremzow, Germany.
Currently, Gore Street's investment policy allows for 40% of its investments to be made outside of the UK and Ireland. Alongside the potential to increase this, the company is also proposing to issue up to 750 million new ordinary shares and/or C shares. This would be pursuant to an initial issue, which would be made up of an initial placing, offer for subscription and intermediaries offer and thereafter a 12 month share issuance programme.
In April 2021, Gore Street raised £135 million through the issue of new ordinary shares at 102p per ordinary share. This followed it raising gross proceeds of £60 million from an initial placing, offer for subscription and intermediaries offer in December 2020. And in March 2021, the company secured a £15 million revolving credit facility from Santander to finance the construction of existing projects and to purchase new grid scale battery storage projects from Gore Street's pipline.
This new programme would require the production of a prospectus, although this will be subject to prevailing market conditions and investor sentiment, the company said. Other proposals listed by the company include increasing the limit on borrowings and clarifying its approach to currency hedging.
These proposals would allow the company to raise additional funds in a timely manner in order to enable it to take advantage of opportunities to make further investments, it said, while increasing the market capitalisation of the company will make it more attractive to a wider investor base.
Alongside this, Gore Street said that the company's fixed running costs will be spread across a larger equity capital, while these proposals may increase diversification of the company's portfolio of energy storage assets by enabling it to access a pipeline of future investment opportunities outside the UK and the Republic of Ireland.
A general meeting is to be held on 11 April to provide details on the proposed changes and proposed issue of shares.
Current Gore Street assets under development include the 49.9MW Ferrymuir and 79.9MW Stony battery storage sites, with Nidec ASI recently selected to provide engineering, procurement and construction (EPC) services for the assets. It follows the company announcing in November it would be exapanding its Kilmannock battery energy storage system in Co. Wexford, Ireland by 90MW, building on the 30MW already announced.