Downing Renewables & Infrastructure Trust (DORE) has acquired Swedish electricity distributor Blåsjön Nät.
The London-listed investment trust said it has bought the electricity distribution system operator for £7m (€8.2m), funded through its revolving-credit facility.
Blåsjön delivers 16-18GWh per year of electricity through medium and low-voltage lines to its 1,500 domestic and business customers in Strömsund, northern Sweden. Blåsjön’s grid network is 436km in length and comprises overhead lines, three primary and 161 secondary substations.
The transaction is DORE’s second acquisition in the grid and grid-stability services sector. Last month, DORE said it was buying Mersey Reactive Power, a UK power management plant.
Tom Williams, partner and head of energy and infrastructure at Downing LLP, the investment manager to DORE, said: “The accretive acquisition of Blåsjön highlights our continued ambition to further diversify DORE’s portfolio.
“By investing in long-life assets like electricity distribution grids, the company can access long-term, inflation-linked revenues that are not dependent on the sale of electricity in the wholesale market.”
DORE is a closed-end investment trust that invests in a diversified portfolio of renewable energy and infrastructure assets in the UK and Northern Europe.
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