A power plant in Hoddesdon has been sold to new owners for almost £5 million.
The gasification facility in Ratty’s Lane has been bought by AEW UK, a real estate investment trust, for £4.8 million.
The 47,350 sq ft property is let to Hoddesdon Energy, which occupies the building for use as a thermal treatment, waste-to-energy power plant.
Built at a cost of £60 million, the plant is designed to produce energy from dry commercial waste using high temperatures, known as “gasification”.
When running it will be able to provide power to over 7,000 homes, using about 90,000 tonnes of rubbish each year, supplied by two waste management companies.
The plant will be operated by Bouygues Energies and Services, an international contractor specialising in energy.
The plant is situated opposite Rye House Power Station and the aggregates site where Veolia has controversially proposed to build an incinerator.
Alex Short, director of AEW, said: “We are pleased to announce this latest acquisition in such an important and growing sector that rarely forms part of institutional property investment portfolios.
“The acquisition yield and long income stream benefiting from CPI linked uplifts, applied five yearly, made this a particularly attractive prospect.”
AEW’s latest acquisition provides a lease term of 32 years to expiry and 14 years to break, with a net initial yield of 5.9 per cent.
The manager has a further ten assets under offer and expects to make additional announcements in the coming weeks.
Source: Hertfordshire Live