FGEN: £104m disposal highlights value of active asset management
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Foresight Environmental Infrastructure (FGEN) has demonstrated the value of active asset management, agreeing to sell its remaining 49% stake in six anaerobic digestion (AD) facilities to Future Biogas for £104m.
The transaction marks the completion of a process that began in August 2024, when FGEN sold a 51%interest in the portfolio to Future Biogas. Since then, the partners have worked to improve operational performance, upgrade facilities and extend asset lives beyond the expiry of government subsidy support, while exploring opportunities including carbon capture.
The results are reflected in the disposal price, which represents a 7.5% premium to the portfolio’s June 2026 valuation, adding £7.2m, or approximately 1.2p per share, to net asset value. The investment has generated an internal rate of return of 12.9 per cent and a 1.9 times multiple on invested capital.
The transaction illustrates an important feature of FGEN’s investment strategy: value creation is not simply about acquiring and holding infrastructure assets, but actively managing them throughout their investment lifecycle. Working with specialist operators to improve performance and identify new revenue opportunities can create value that may ultimately be crystallised through a strategic sale.
The proceeds will be used primarily to repay drawings under FGEN’s revolving credit facility, strengthening its balance sheet and providing greater flexibility to pursue new investment opportunities across renewable energy, energy infrastructure and sustainable resource management.
Importantly, the disposal does not represent a retreat from anaerobic digestion. FGEN retains interests in five other facilities, valued at £76.9m.
For investors, the significance of the transaction extends beyond the premium achieved. It demonstrates how operational expertise, strategic partnerships and disciplined capital allocation can combine to generate attractive investment returns while releasing capital for future growth.
In an increasingly competitive infrastructure market, the ability to realise value from mature investments and redeploy capital into new opportunities could prove just as important to FGEN’s long-term performance as the assets it continues to own.
In the film below, Charlie Wright, Investment Manager at Foresight, outlines the Trust’s Mission Statement, whilst highlighting its uniqueness in the listed environmental infrastructure space