Octopus Renewables Infrastructure Trust (ORIT) has agreed to a conditional sale of its Ljungbyholm onshore wind farm in Sweden.

The €74m ($80.5m) transaction with a German institutional investor aligns with the asset's valuation as of 31 March 2024.

The sale price aligns with its valuation of Ljungbyholm as of 31 March 2024. The company expects to achieve an internal rate of return (IRR) of 11% throughout its investment period.

Completion of the sale is pending foreign direct investment approval from the Swedish Inspectorate for Strategic Products, expected in the second half of 2024.

In March 2020, ORIT acquired the 48MW wind farm at the pre-construction stage, committing €68m to the project.

Octopus Energy Generation, the investment manager, oversaw the construction phase, achieving operation in June 2021.

This sale is part of ORIT's broader capital recycling strategy, which previously included the disposal of two Polish onshore wind assets in December 2023 and a Spanish solar PV project option in January 2024.

The capital recycling programme will generate £159m.

Octopus Renewables Infrastructure Trust chairman Phil Austin stated: “We are pleased to enter this transaction, which is another key part of ORIT's capital recycling programme.

“The agreed price further supports the company's valuations, and once the Transaction is completed it will enable us to reduce our short-term debt which, as we have previously communicated, is a key objective for us at this time.

“Ljungbyholm was the company's first investment, following ORIT's IPO [initial public offering], and the exit further demonstrates our investment manager's ability to manage the construction and operation of new renewable energy assets, which helps to drive the transition to net zero."