{"id":61519,"title":"Octopus fund buys Yorkshire solar park for £34.6m","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-10-15T05:22:23+00:00","modified":"2026-10-15T05:29:52+00:00","canonical_url":"https://stockmark.it/onpath-sells-barnsdale-solar-park-to-octopus-fund-for-34-6m/","markdown_url":"https://stockmark.it/onpath-sells-barnsdale-solar-park-to-octopus-fund-for-34-6m.md","json_url":"https://stockmark.it/onpath-sells-barnsdale-solar-park-to-octopus-fund-for-34-6m.json","category":"Business","categories":["Business","Energy","Investment"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/octopus-fund-buys-yorkshire-solar-park-for-34-6m-1.png?fit=1536%2C1024&quality=80&ssl=1","format":"news","language":"en-GB","content":"A listed investment vehicle managed by Octopus Energy Group has agreed to purchase a solar farm under construction in Yorkshire for £34.6 million. The asset, known as the Barnsdale Solar Park, is currently being developed by Sunderland-based OnPath Energy. The transaction involves a 40 megawatt facility situated on 87.3 hectares of land. OnPath stated that the project represents an investment of at least £25 million. The deal is one of two solar energy initiatives the company is currently undertaking in the region, with preparatory work also underway at the Common Farm Solar Park near Dinnington in South Yorkshire. OnPath, which was formerly known as Banks Renewables, is the seller in this transaction.\n\nOctopus Renewables Infrastructure Trust, or ORIT, has signed a conditional agreement to acquire the site. The completion of the purchase is subject to the site meeting specific requirements before the contract for difference commencement deadline. This deadline is expected to be satisfied in March 2027. Once operational, the solar farm is projected to generate electricity sufficient to meet the annual needs of approximately 19,000 homes. The project is being delivered by Goldbeck Solar, a contractor with whom ORIT maintains an existing relationship. The facility was awarded a fixed price, CPI-linked government-backed contract for difference under allocation round five, which will run until 2041.\n\nFund managers indicated that the acquisition aligns with ORIT’s strategy to address the persistent gap between the value of its assets and its share price. The fund’s chairman described this discount as a source of considerable frustration in the interim report for the period ending June 2026. At that time, the portfolio comprised 740 megawatts across 39 assets in five countries, with shares trading at an average discount of 36.9 per cent. Managers expect the Barnsdale acquisition to contribute positively to the fund’s medium to long-term total return target of 9 to 11 per cent under its ORIT 2030 strategy. The firm noted it continues to pursue construction-stage investment opportunities alongside asset sales as part of its capital recycling programme.\n\nDavid Bird and Chris Gaydon, co-fund managers of ORIT, stated that the agreed terms are attractive and that the project is expected to deliver a return consistent with the ORIT 2030 targets. They added that the purchase structure manages remaining construction and delivery risk. Once the acquisition completes, Barnsdale will add scale to the UK solar portfolio, with contracted revenues expected to contribute to dividend cover from the financial year 2027 onwards. The managers expressed satisfaction with investing at this stage, noting that Goldbeck Solar is bringing its track record to the delivery. The deal also establishes a new relationship with OnPath Energy, which may lead to similar opportunities in the future.\n\nPhil Austin, chair of ORIT, added that the solar park offers an attractive risk-adjusted return supported by fixed price, CPI-linked revenues. He said the acquisition increases the contracted proportion of the portfolio and provides long-term cash flow visibility, reflecting the selective and disciplined approach to capital allocation underpinning the ORIT 2030 strategy."}