Swiss Life Asset Managers and Schroders Greencoat have acquired a UK district heating and cooling network portfolio from Equans in a £255m (€296m) deal.

Following an agreement in September last year, Swiss Life Asset Managers funds, as the majority partner in the consortium, and Schroders Greencoat have now completed the acquisition of the Equans Urban Energy portfolio of 12 district heating and cooling networks, servicing residential, commercial, public and retail customers.

Equans Urban Energy, which comprises East London Energy Limited and Equans DE Holding Company Limited, has an aggregate enterprise value of around £255m, Equans said, adding that Humber Energy is excluded from the scope pending completion of its sale in 2024.

The acquired portfolio includes 432MW of heating, 117MW of cooling and 67MW of electricity.  

Bouygues subsidiary Equans said this sale forms part of its strategic plan, disclosed on 23 February 2023, which includes the sale of asset-based activities.

Roman Wyss, senior portfolio manager at Swiss Life Asset Managers, said: “District heating and cooling uptake has grown with the increasing need for cleaner and more efficient energy supply.

“We look forward to developing and innovating the portfolio further, as associated technologies have the potential to be a key way to reduce the carbon footprint of the heating and cooling infrastructure, especially if based on renewable energy sources and not reliant on fossil fuels.” 

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