Savills Earth’s Capital Advisory team, on behalf of Harworth Group, is bringing the freehold of three operational gas peakers to market, for offers in excess of £2.5m, representing a gross initial yield of 7.45%.
The portfolio includes ‘Houghton’ in Barnsley, ‘Docks Way’ in Newport and ‘Bristol Road’ in Gloucester, generating a total annual income of £186,231 per annum.
Houghton is a 1.27 acre site located on the former Houghton Main Colliery site at Houghton Main Colliery roundabout. The facility utilises two 1.35MW generators fuelled from mains gas. The site is on a wider former deep mine and restored opencast coal site which has in part been redeveloped for a large scale distribution complex. Wider parts of the site have planning for business Park uses and the current lease term expires in 2030.
Docks Way extends to 0.3 acres comprising an operating eight MW gas peak power plant with four engines. Located on the edge and adjacent to one of the entrance points to Newport Docks and opposite commercial use, the site also benefits from close proximity to the Western Power Distribution substation. The current lease term expires in 2040.
Bristol Road is an operating 20 MW peak power scheme totalling 1.1 acres. The operator has 10 x 2MW Generators on site, and the current lease term expires in 2041. The site is situated off Bristol Road, two miles from the city centre within an established industrial and commercial location.
Henry Grant in Savills Energy, Infrastructure and Renewables team, states “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.”