US industrial giant ProLogis is to pay £71.7m for water company Severn Trent’s property subsidiary after being selected as preferred buyer, as revealed by EGi last month.
Severn, which last month demerged waste division Biffa and also sold its US-based analytical environmental testing business, said it expected to book £35m of profit from the deal.
The Birmingham-based water company chose ProLogis ahead of Gazeley, Rosemound and HelioSlough after putting Severn Trent Property up for sale in June.
The acquisition will almost double the size of ProLogis’ development bank, adding 3.7m sq ft of planning consents at key logistics sites in the Midlands to its UK portfolio.
Severn Trent Property also has a 500-acre land bank.
Severn Trent Property was set up by the water company in a bid to capitalise on land being made operationally redundant, but was put up for sale as part of a streamlining drive instigated by chief executive Colin Matthews last year.
JLL Corporate Finance advised Severn Trent Properties.
References: EGi News 06/11/06
