Hargreaves Services PLC on Tuesday said it sees ‘clear opportunities’ in its renewable energy land assets, and has made significant progress on their development.

The Durham, England-based provider of specialist raw materials, land investments and environmental and industrial services said it ‘has identified clear opportunities for value realisation’ in renewables.

Hargreaves has ‘several thousand acres’ of land leased to third parties, for the construction of wind farms and other renewable assets. The firm said the first of these wind farms, at Dalquhandy, became operational earlier this year, while other similar land assets are on track to earn Hargreaves ‘a growing and meaningful annual return’ over the next few years.

‘While originally unsuitable land for commercial or residential projects, Hargreaves has identified exciting opportunities for renewable energy projects generating a long-term index linked rental income stream for the group,’ said Acting Group Chair Nigel Halkes.

Hargreaves also said it recently commissioned the assets’ first independent valuation by Jones Lang LaSalle Ltd, receiving a market value between £21.6 million and £23.1 million. This is expected to grow to between £27.2 million and £28.9 million once generation commences.

Hargreaves assured shareholders that it intends to realise value from these assets - and repatriate the proceeds - ‘in an orderly manner’ over the next five years.

Halkes commented: ‘With a roadmap to delivery of these projects now in sight, our valuation and realisation plan is a clear demonstration of the group’s efficient strategic planning and commitment to creating, delivering and realising value for our shareholders.’

Shares in Hargreaves Services were up 2.1% at 465.00 pence in London on Tuesday afternoon.

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