Funds managed by Foresight Group acquire Harmony Energy Income Trust in landmark UK BESS Transaction

JLL has announced the completion of the largest operational Battery Energy Storage System (BESS) sale in Europe to date. JLL’s Energy and Infrastructure Advisory (E&IA) team advised Harmony Energy Income Trust (HEIT) on their sale to Foresight Group LLP.

JLL’s Energy and Infrastructure Advisory team was appointed by HEIT in 2024 to explore divestment options, including but not limited to a whole or partial sell-down of their UK operational c.400MW/800MWh grid-connected Battery Energy Storage (BESS) portfolio.

Following a rigorous, competitive, two-phase process that attracted numerous credible bids, Foresight Group LLP has acquired 100% of HEIT Plc's share capital through a newly formed company, PP BidCo Limited, held by two funds, FEIP II and Averon Park. This acquisition was completed via a take-private scheme of arrangement under part 26 of the Companies Act 2006.

Foresight’s offer of 92.4 pence per share equates to an Enterprise Value of c.£340m or £860k/MW (acquisition price plus outstanding debt divided by total capacity). This pricing, a 94% premium to the closing price on the last business day prior to the announcement of the sales process, exemplifies investor confidence in the long-term fundamentals of the UK BESS market. Beyond this single transaction, the deal underpins the business model of UK BESS developers and provides a public market comparable for the wider industry.

The notable transaction highlights the growing demand for energy storage assets among institutional investors and underscores JLL's expertise in facilitating complex energy infrastructure deals.

Following this successful outcome, to assist the further scaling of the Harmony Energy business, JLL have been appointed by Harmony Energy Limited (separate to HEIT) to run a corporate level equity raise (“Project Hercules”), expected to launch in late summer 2025.

Max Stirling, Director – Energy & Infrastructure Advisory, JLL said: “It was a pleasure to work once again with the Harmony team on this landmark transaction. Their delivery of a high-quality, operational portfolio enabled a competitive process that attracted significant interest from leading investors. As the largest operational BESS transaction in EMEA to date, this deal sets a benchmark for the sector and reinforces the growing institutional appetite for utility-scale storage in the secondary market. We look forward to continuing to work with the Harmony team via Project Hercules.”

Peter Kavanagh, CEO & Founder – Harmony Energy, said: “We’re grateful to the JLL team for their dedication, hard work and guidance throughout the process. Their expertise helped deliver a strong outcome for shareholders and was vital in completing this landmark deal”

Harmony Energy Income Trust (LSE : HEIT) listed on the London Stock Exchange in November 2021, as a dedicated investment vehicle focused on Battery Energy Storage Systems, constructing and operating grid scale assets across the UK. HEIT has an operational portfolio of c.400MW/800MWh. Their experienced management team, driven by their de-carbonisation mission, specialise in deploying flexible energy infrastructure assets to support renewable generation integration.

Established in 1984, Foresight Group (LSE : FSG), a leading independent infrastructure and private equity investment manager, has supported sustainable investments across renewable energy, infrastructure and private equity sectors. A FTSE 250® company with assets under management of over £12.3 billion and operations in key markets across Europe, Australia and North America, their team of over 400 professionals delivers innovative investment solutions with environmental sustainability at their core. Guided by their commitment to responsible investment principles, they create long-term value for investors while making positive contributions to the global transition to a low-carbon economy. Foresight Group is the trading name of Foresight Group Holdings Limited. For further information, visit foresightgroup.com.

Founded in 2010, Harmony Energy is one of the Europe’s leading developers, owners and operators of utility-scale battery energy storage, having operated over 1GWh in the UK with a further European pipeline of over 13GW.