London-listed Gresham House (AIM:GHE)  told investors on Thursday that it had sold its first material battery storage development project.

The sale was made to Gresham House Energy Storage Fund (‘GRID’) which invests in a range of utility-scale operational energy storage systems primarily using batteries across the UK.

The 49MW battery-only project, known as the ‘Red Scar’ project located just outside Preston on the Red Scar business park, was sold for around £32.8 million. 

Red Scar is also one of the exclusive portfolio projects being developed by subsidiaries and associates of Gresham House for sale to GRID. 

Gresham House and its associate Noriker Power will make an initial net gain on sale of around £1.2 million with deferred payments, conditional on performance, of around £0.4 million in twelve months time.

"This is a good example of how Gresham House uses its balance sheet to align itself with its clients and funds that it manages or advises,” said Tony Dalwood, Chief Executive of Gresham House.

Shares in Gresham House were trading 1.13% higher at 617.5p on Thursday afternoon.

Following the sale, the statement detailed, Gresham will have an exposure of £3.4 million in the remaining battery storage development projects in exclusivity with GRID.

This will total over 100MW in size altogether and is expect to be sold during 2020.

“We are targeting this area to generate long term shareholder value from strong and sustainable investments,” stated Dalwood.

He added, “However, future returns may be less certain in timing and may vary from this initial successful development.”

Meanwhile, Gresham House Energy Storage Fund said it expects to acquire a further three projects in the coming months following the completion of the Red Star acquisition. 

The fund previously acquired two battery storage facilities from VLC Energy for a total £29.2 million in mid-December bringing Gresham’s operational portfolio of battery storage projects to 125MW. 

These further three projects, two of 50MW each and one being the Littlebrook extension of 5MW, will increase the Fund's total operational portfolio to 279MW, the company explained.

“We look forward to integrating all these new assets into the Fund's portfolio and adding further projects in H1 2020,” added John Leggate, Chairman of Gresham House Energy Storage Fund.

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