Segro has sold its interests in the Slough Heat & Power power generation operation to Scottish and Southern Energy - one of the largest energy companies in the UK – for £49.2m.
Segro will sell its shares to Scottish and Southern Energy and will simultaneously grant it a 45 year lease of the site which the plant occupies.
Scottish and Southern Energy is also contracting to an ‘Energy Availability Agreement’ under which it will commit to ensuring that power generation operation continues to offer a high level of utility services to Segro customers.
The power plant is located on the Slough Trading Estate – the largest business centre of its kind under single ownership in Europe – providing facilities for more than 400 companies and 17,000 employees.
Ian Coull, Segro’s chief executive said: ‘This transaction is good news for our customers and our shareholders.
'Our customers on the Slough Trading Estate will benefit from Scottish & Southern Energy’s dedicated expertise…And our shareholders will benefit from the divestment of a non-core activity which will enable our management team to concentrate fully on its own area of expertise – the provision of Flexible Business Space across Europe.’
The deal should complete by December.