Funds managed by Foresight Group LLP (“Foresight”), have purchased Rula Developments (Immingham) Limited (RDIL) for £9.75 million from Velocys plc, the sustainable fuels technology company.
RDIL owns the site for the proposed Altalto waste-to-sustainable-fuel project, which is being developed in collaboration with British Airways.
International law firm Osborne Clarke advised Foresight Group. The team was led by corporate partners Chris Yeo and real estate associate director Charlotte Walker, supported by Senior Associate Bridget Baillie (Tax) and Associates Andrew Massey (corporate) and Rebecca Davies (real estate)
As part of the transaction Altalto has been granted a call option to re-purchase RDIL within three years and Altalto has granted Foresight a right of first refusal to invest up to £100 million in the project, alongside British Airways and other future investors, once the full funding is required.
Foresight brings a proven track record and history of investing in energy transition infrastructure. Following the sale, the Project has retained the right to access the land for maintenance and pre-development activities associated with its existing planning permission. Commencement of construction remains subject to further clarification of government policy support for such projects.
David Hughes, CIO of Foresight, said: “Foresight is delighted to become involved in the Altalto project through the acquisition of the proposed site. The Project is consistent with our aims of investing in sustainable businesses that are looking to advance the energy transition.”
Osborne Clarke has an established and well-respected position as one of the leading law firms advising on renewable energy projects and transactions. As businesses strive to meet the challenges of decarbonisation, Osborne Clarke is supporting its clients on projects to procure, fund and develop the sustainable infrastructure, buildings and land use of the future. The team’s experience and understanding of the energy sector means they are well placed to advise on your decarbonisation journey.