Octopus Renewables Infrastructure Trust PLC on Friday said it has cancelled its acquisition of Spanish solar projects.

The London-headquartered closed-ended investment company has decided to terminate its option to acquire 175 megawatts of ready-to-build solar projects in Spain.

‘ORIT originally entered into a conditional acquisition agreement over the sites in 2020; however, having reassessed the projects on a risk-adjusted basis and taking into account the company’s approach to capital allocation, exiting the option at a value above the company’s holding value was a more attractive proposition than committing to the construction,’ it explained.

ORIT has been refunded is initial deposit paid and has in addition negotiated a termination payment from the seller, whom it didn’t name. This has resulted in a net gain on the investment of approximately £3.0 million over the €2.0 million initial deposit and £1.5 million over the £3.2 million holding value. This will have a positive impact on net asset value of about 0.3 pence per share.

Chair Phil Austin commented: ‘Exiting this option demonstrates ORIT’s ability to remain flexible as market conditions change and reflects our disciplined approach to capital allocation, allowing us to capitalise on opportunities to enhance value for shareholders when the right deals arise.’

Shares in Octopus Renewables were up 0.3% at 89.49 pence each in London on Friday morning.

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