12th Feb 2016 09:48
LONDON (Alliance News) - Alpha Real Trust Ltd said on Friday it has acquired a long leasehold interest at a development site in Perthshire, Scotland for GBP2.5 million, where it intends to install a combined heat and power plant.
The property investor said it had obtained the 40-year long leasehold interest with full planning consent and secure grid connection for the installation of a wood-fired combined heat and power plant at Acharn in Perthshire, Scotland. Alpha Real Trust purchased the six-hectare site useing existing cash reserves, it added.
Alpha Real Trust said the project, which is expected to have a capacity of six megawatt electric, will provide it with a long-term secure and predictable inflation-linked income stream, with the potential for associated capital growth from an infrastructure asset in the UK renewable energy sector. It said the potential gross development value is in the region of GBP30.0 million, and on completion it forecasts a running yield in excess of 9.0%.
The company said it is in advanced discussions with capital partners on co-financing options for the construction cost of the plant, and the main construction and maintenance contracts with attached performance guarantees are "also well advanced", in order to achieve commercial operations by 2017.
Shares in the Alpha Real Trust were untraded on Friday, having last traded at 79.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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