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Hargreaves Services PLC on Monday said it has completed the sale of the first tranche of renewable energy land assets to real estate investment firm Meadow Partners LLP for £8.8 million. The Durham, England-based industrial services company said an additional top up payment, expected to be £3.8 million, is due by September 2029 and is contingent on future wind yields. The firm said the further payment it will receive could be as much as £5.0 million if wind yields are strong. Hargreaves Services said it has sold land generating rental income streams from two wind farms and three access agreements in south Lanarkshire, Scotland, with a current annual rental income of £700,000 per year. This is inclusive of a variable top up of £200,000 per year reflecting wind yields experienced to date. The sold assets form part of the renewable energy asset land portfolio that was independently valued at a minimum of £27.0 million in July, and has an aggregate book value of £7.4 million. The sold assets represent £12.6 million of the valuation and £4.0 million of the book value. Hargreaves Services expects that the disposal will result in a one-off net benefit to pretax profit and cash in the financial year to the end of May 2026 of £3.0 million and £8.0 million respectively. ‘We are delighted to announce this initial transaction in relation to our portfolio of renewable energy land assets. This sale represents the first phase in the group’s strategy to realise cash from these assets, and we are currently evaluating different mechanisms to return this cash to shareholders,’ said Chair Roger McDowell. ‘This transaction marks the beginning of a number of material disposals from our developing renewables portfolio, which we intend to deliver for shareholders in the coming years.’ Shares in Hargreaves Services were up 1.9% at 670.49 pence in London on Monday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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