Harworth Buys Yorkshire Office

Harworth Estates has expanded its investment portfolio with the acquisition of a well-let office building in Rotherham at a net initial yield of 13.3%.  It has acquired Sanderson House in Poplar Way for £2.2m. Sanderson House is a 20,000 sq ft office building, which was constructed by Sanderson (now Civica UK) in 1998 and is fully let to Civica UK on a long-term lease, expiring in 2018.

It is located close to Harworth’s flagship Waverley development, which includes the nationally-renowned Advanced Manufacturing Park and a pipeline of 4,000 new homes over the next 15 years, of which 400 have already been built and are occupied.

It also sits within Yorkshire’s emerging Advanced Manufacturing Innovation District, which is backed by Harworth in partnership with the University of Sheffield, Sheffield Business Park, Sheffield City Council and Rotherham Metropolitan Borough Council. The district provides the land, property and technical impetus required for multinational companies and SMEs to work alongside world-leading researchers to develop new ideas in energy, transport, infrastructure, manufacturing and health.

Harworth’s purchase of Sanderson House is its second acquisition of an income-producing investment property over the past year, following the purchase of Sinfin Lane Industrial Estate in Derby for £6.95m in September 2015.  Harworth’s investment portfolio now totals 1 million sq ft in the Midlands, Yorkshire and north east of England.

Dave Travis, Associate Director of Business Space at Harworth Estates, said: “Sanderson House represents a solid acquisition in an area we are already heavily investing in through our Waverley development.

“We will continue to focus on improving the recurring income base of our business and we will aim to make further acquisitions where appropriate”.

Harworth’s property advisers on the deal were Bilfinger GVA and Knight Frank. Hlw Keeble Hawson provided legal advice.

Barry Riley, Associate at Bilfinger GVA, said: “Harworth has unprecedented knowledge of the local market and Sanderson House has great potential.  Harworth’s excellent track record and ability to purchase the building quickly helped secure the purchase off-market.”

Richard Smith, Partner at hlw Keeble Hawson’s Sheffield office, added: “Over the past six years hlw Keeble Hawson has been pleased to represent Harworth in a series of high-profile deals – including the purchase of Sinfin Lane Industrial Estate – as it continues to develop its powerful property portfolio. The latest purchase of Sanderson House also enhances the wider vision to attract both global and local businesses to the emerging and vibrant Advanced Manufacturing Innovation District.”