Gloucester site among trio of gas peaker plants being brought to market
An electricity supply plant in Gloucester is one of a portfolio of three being sold by Savills Earth's Capital Advisory team, on behalf of Harworth Group.
The operating Bristol road site, two miles from the city centre, uses gas and generally only runs when there is a high demand for electricity.
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It is a 20 MW peak power scheme spanning 1.1 acres and the current lease term expires in 2041.
Apart from Bristol Road, the portfolio includes 'Houghton' in Barnsley and 'Docks Way' in Newport. The freehold of the trio is being sold for offers in excess of £2.5 million, representing a gross initial yield of 7.45%. They generate a total annual income of £186,231 a year.
Henry Grant in Savills energy, infrastructure and renewables team, said: "This is an excellent investment opportunity to acquire a high-yielding portfolio.
"The schemes offer attractive long term index linked rental incomes. The sites are also well located within established industrial locations, and we are expecting good interest from a number of investors."
Houghton is a 1.27 acre site on the former Houghton main colliery site. It uses two 1.35MW generators fuelled from mains gas.
Wider parts of the site have planning for business park uses and the current lease term expires in 2030.
Docks Way, near one of the entrance points to Newport docks, extends to 0.3 acres comprising an operating eight MW gas peak power plant with four engines. The current lease expires in 2040.
