- Alternative asset manager Gresham House has sold its first material battery storage development project to Gresham House Energy Storage Fund.

The 49MW battery-only project, known as Red Scar, was sold on 31 December 2019 for a total enterprise value of approximately £32.8m and is located on the Red Scar Business Park, by the Longridge Road and the M6 outside Preston.

Through its wholly owned subsidiary Gresham House Devco and associate Noriker Power, Gresham House made £0.6m of equity and loan investments in the project.

Gresham House said its investment will make an initial net gain on sale of approximately £1.2m (after contractual and expected payments and transaction fees), with deferred payments, conditional on performance, of approximately £0.4m expected in 12 months' time.

Following the sale, Gresham House will have an exposure of £3.4m in the remaining battery storage development projects, which are in exclusivity with GRID and total over 100MW in size, and expect to be sold during 2020.

Gresham House chief executive Tony Dalwood said: '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.

'We are targeting this area to generate long-term shareholder value from strong and sustainable investments. However, future returns may be less certain in timing and may vary from this initial successful development.'

At 10:00am: [LON:GHE] Gresham House Plc share price was +2.5p at 612.5p

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