Citicore Energy REIT Corp. (CREIT) has tweaked its investment strategy in the hope of realizing lease income at an earlier time.
An affiliate of Megawide Corp., CREIT has dropped “successful plant testing and commissioning, with stable offtake contracts for 100 percent of the power plant’s expected generation output” in its investment criteria.
CREIT said removal of the particular criteria was meant to expand and accelerate possible investments that can be folded into the company.
“With the revised criteria, the company will be able to realize lease income earlier as renewable energy properties can now be leased out to solar plant developers even during construction stage, thereby providing earlier income stream to the company’s shareholders,” CREIT said.
Upon successful plant testing, commissioning and securing of offtake contracts, CREIT still has an option to purchase the power plant and lease it out to the plant operator.
The revised investment criteria was approved last December 14 by the Securities and Exchange Commission.
Included in CREIT’s current investment criteria is for new renewable energy properties to primarily be a site suitable for solar power plants, but may include other renewable energy properties available in the market.
Potential renewable properties should also be located in underdeveloped areas where the company has completed and validated the availability of resources and the potential of such area for future township developments to drive long-term appreciating land value.
CREIT is the country’s first renewable energy REIT.