A renewable energy facility at the heart of the Isle of Wight has been sold to a London investment firm in a major multi-million pound deal.
Leading property agency Fisher German has sold an Anaerobic Digestion (AD) facility in Arreton to leading independent infrastructure and private equity investment manager, Foresight Group.
Fisher German, working as joint agents with BCM surveyors, acted on behalf of an entrepreneurial consortium to sell the site, achieving considerably above the guide price.
The standalone facility is based on a 24 acre site and converts biogas to biomethane as part of a Gas to Grid injection scheme. The energy captured on the site is then supplied to a local market as well as into the national gas grid. CO2, a by-product from the process is compressed and sold as well.
Foresight Group purchased the site to add to its portfolio of renewable energy plants, and has established a market leading position in AD having previously invested into 25 greenfield and operational AD plants in the UK and Germany
David Kinnersley, Associate Director at Fisher German, said: “I assisted the consortium in 2013 when they were originally looking to finance the project, and then last autumn they expressed an interest in selling the site.
“We spent several months working with the client to carefully prepare for the sale, ensuring that all of the relevant contracts were correctly in place and that there were no unresolved compliance issues around planning.
“We used our knowledge of the sector to approach those who I knew were keen to buy, and we had a total of ten applicants before selecting Foresight Group as the preferred buyer. The market is changing rapidly with consolidation taking place at the moment.
“Anaerobic Digestion facilities do not come to the market often, and we had a high level of interest particularly as the business is well run. We are very happy to conclude the sale of the site, achieving a very good result for our client.”