Severn Trent, Britain's second-largest water company, has sold its property division for £71.7 mln (EUR 106.9 mln) to distribution facilities giant ProLogis Development. Birmingham-based Severn Trent, which is slimming down to focus on its core water activities, made a £35 mln aggregate profit on the deal. The portfolio includes land that will support more than 330,000 m[sup]2[/sup] of industrial development in the East and West Midlands, the heartland for distribution and logistics in the UK.
Severn Trent, Britain's second-largest water company, has sold its property division for £71.7 mln (EUR 106.9 mln) to distribution facilities giant ProLogis Development. Birmingham-based Severn Trent, which is slimming down to focus on its core water activities, made a £35 mln aggregate profit on the deal. The portfolio includes land that will support more than 330,000 m2 of industrial development in the East and West Midlands, the heartland for distribution and logistics in the UK.
The Severn Trent portfolio includes development sites at three major industrial locations. The first is Midpoint Park, an 84-acre property near Birmingham adjacent to an existing industrial project. ProLogis said the parcel can support more than 111,000 m2 of warehouse development. ProLogis acquired a 100% freehold interest in the site. The second is Daventry International Rail Freight Terminal (DIRFT) in the East Midlands adjacent to an existing business park. The site, which includes an intermodal rail facility, can support more than 181,000 m2 of industrial development. ProLogis acquired a 92.5% freehold interest in the site; the remaining interest is held in a joint venture with a private developer.
The third location is Coton Park in the East Midlands and adjacent to an existing ProLogis industrial project. The site can support 34,000 m2 of new development.
