ScottishPower subsidiary Southern Water has sold a 100,000 sq ft office complex for £16.7m to keep its property disposal programme firmly on course for total sales significantly above the initial £30m estimate.

The sale of Churchill Court in Crawley, which houses Southern Water's technology group, to Standard Life Assurance takes the total raised to more than £26m. Technology will lease back some office space as part of the deal. Further sales of the remaining properties are expected shortly.

ScottishPower took over Southern Water in August 1996 and said it aimed to divest the subsidiary's non-essential businesses for around £70m. It also planned to raise £30m from property sales. In the event, £90m was raised from the business divestments alone.

ScottishPower Finance Director Ian Russell, who is also Chairman of Southern Water, said: "We are confident that the demanding targets set after the Southern Water takeover will again be beaten, an indication of the shareholder value delivered by the acquisition."

Southern Water Managing Director Ronnie Mercer said: "The disposal is another important step in our programme of rationalisation, allowing Southern Water to maximise resources on further improving customer service."

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Colin McSeveny,            Media Relations Manager         0141 248 8200