Harworth Acquires Sinfin Lane Industrial Park

Harworth Estates has acquired Sinfin Lane Industrial Park in Derby for £6.95 million, reflecting a net initial yield of 9.0%.

Sinfin Lane Industrial Park comprises 25 industrial units totalling 471,500 sq ft, along with open storage, and is adjacent to Rolls Royce’s worldwide headquarters, where it manufactures Trent jet engines.  22 of the units, totalling 135,300 sq ft, are let to tenants, including Kuehne & Nagel. Harworth intends to demolish the remaining three vacant, obsolete units to enable the development of up to 15 acres of land.  This land includes a historic planning consent for the development of six acres of the site for residential use.

Harworth’s purchase of the 41-acre estate signifies its first acquisition of income-generating property with a view to enhance its business space portfolio of 0.85 million sq ft in the Midlands, Yorkshire and north east of England.  In the Midlands it already owns Asfordby Business Park in Leicestershire and Bilsthorpe Business Park in Nottinghamshire and has recently secured planning consent for 150 homes on the site of the former Gedling Colliery in Nottinghamshire.

The company is seeking to purchase further similar income-producing assets to complement its portfolio.

It is Harworth’s third acquisition over the past nine months, following the purchases of the 162-acre former Skelton Grange power station in Leeds and the 320-acre former aluminium smelter in Lynemouth, Northumberland.

Owen Michaelson, Chief Executive of Harworth Estates, said:  “This well-located investment continues the process of improving the recurring income base of our business and will create a liquid, income-producing asset with a number of active asset management opportunities.  It provides us with the ideal opportunity to apply our proven in-house asset management and strategic planning skills to increase value and generate strong returns.”