A power station in Hoddesdon has been sold to new owners for almost Â£ 5million.
The Ratty’s Lane gasification facility was bought by AEW UK, a real estate investment trust, for Â£ 4.8million.
The 47,350 square foot property is leased to Hoddesdon Energy, which occupies the building for waste heat treatment and energy recovery.
Built at a cost of Â£ 60million, the plant is designed to generate power from dry commercial waste using high temperatures, known as ‘gasification’.
When in operation, it will be able to power more than 7,000 homes, using around 90,000 tonnes of waste each year, supplied by two waste management companies.
The plant will be operated by Bouygues Energies et Services, an international entrepreneur specializing in energy.
The plant is located across from the Rye House power plant and aggregate site where Veolia has controversially proposed to build an incinerator.
Alex Short, Director of AEW, said: âWe are delighted to announce this latest acquisition in such an important and growing industry that is seldom included in institutional real estate investment portfolios.
âThe acquisition performance and long-term income stream benefiting from CPI-linked increases, applied every five years, made this a particularly attractive prospect. “
AEW’s latest acquisition provides for a lease term of 32 years until expiration and 14 years until termination, with a net initial yield of 5.9%.
The manager has ten other assets under offer and plans to make additional announcements in the coming weeks.