Enviro fund gathers finance for buying spree

Newly-listed green infrastructure investment fund John Laing Environmental Assets Group is preparing to buy more projects.

The fund raised £160m in March before listing on the at the month’s end. It then bought its initial portfolio of assets from John Laing and a Henderson Equity Partners fund.

The fund has seven operational investments in UK-based solar, onshore wind and wastewater processing. It is managed by John Laing Capital Management.

One of the fund’s assets, the Frog Island East London Waste Authority, caught fire earlier this month. However, it is unlikely to affect the company’s ability to pay a 3p dividend for the half year to 30 September.

The fund has a first offer agreement for environmental infrastructure investments that are developed by John Laing.

It expects the pipeline will supply about £185m of projects in over the next three years. Meanwhile, the fund is completing due diligence on investments from other companies as well.

It is negotiating a revolving credit facility with several lenders to afford the cash needed buy up the investments.

Between 31 March and 17 August the fund’s net asset value rose slightly from 98p to 99.8p

It targets a net internal rate of return between 7.5 and 8.5 per cent on its 100p issue price. Currently, it trades at a 2.7 per cent premium to its NAV.