Harworth grows income portfolio and commercial land pipeline
LONDON: Harworth Group plc, a leading regenerator of land and property for development and investment, has purchased Etherow Business Parkin Glossop and has secured outline planning consent for its Bardon Hill development in Leicestershire as it continues to grow and improve its recurring income base and develop its long-term land pipeline for new commercial development.
The company has purchased the 10.37-acre Etherow Business Park for £6.5 million plus acquisition costs, utilising headroom within its existing £100m Revolving Credit Facility (RCF). Situated two miles east of Junction 4 of the M67 with excellent access to Greater Manchester, Lancashire, Cheshire and Derbyshire, the site comprises 202,070 sq. ft of built space let to a range of industrial occupiers. Etherow currently generates a passing rent of over £682,000 per annum, representing a net initial yield of 9.84%. Harworth will use its asset management capabilities to generate additional income and increase its value.
Harworth has also secured outline planning consent from North West Leicestershire Council for over 350,000 sq. ft of commercial floorspace at its 53-acre Bardon Hill site near Coalville in Leicestershire, as it continues to grow its land and property portfolio in the Midlands. The Bardon Hill site, which sits within two miles of Junction 22 of the M1, was acquired by Harworth in April 2018 as a strategic land purchase. The consent takes Harworth's consented commercial land pipeline to over 10m sq. ft of space across the UK.
Owen Michaelson, Chief Executive Officer of Harworth Group plc, said: "Both deals emphasise the continued implementation of our strategic priorities. Etherow's acquisition forms part of our income churn strategy to recycle receipts from previous income-producing property sales into higher value-adding opportunities, whilst securing outline consent at Bardon Hill further increases our commercial land portfolio for sale or build out.
"These milestones also justify the move to our regional operating model to deliver further value to our shareholders through clear, long-term value-add opportunities. With the outlook for our regional markets remaining solid, I look forward to announcing other land and property acquisitions in our core regions of the North West, the Midlands and Yorkshire & Central in due course."