Contact sells Otahuhu power station site to property developer

It was once the jewel in the crown of Contact's generation portfolio.

Contact Energy [NZX: CEN] has sold the site of its Otahuhu gas-fired power station to Auckland land developer Stonehill Property Trust for $30 million, following its closure last year.

Once the jewel in the crown of Contact's generation portfolio, the combined cycle gas turbine generation plant on the site will be sold along with other plant and equipment over the next 12 months, with the proceeds split evenly between Contact and Stonehill, which will take possession this month.

"We're pleased to have completed the sale in a manner which, when you factor in an efficient sale and handover of the land and the planned plant and equipment sales, delivers a return in line with our expectations on announcing the closure in August 2015," Contact chief executive Dennis Barnes said.

Contact operates 11 power stations across New Zealand, including five geothermal stations near Taupo, thermal stations in Stratford, Te Rapa and Whirinaki, as well as hydroelectric stations in Clyde and Roxburgh.

(BusinessDesk)