Harworth Group plc, a leading regenerator of land and property for development and investment, has purchased an industrial unit in Brighouse and has agreed a new long-term letting with leading upholstery fabric manufacturer Mobus Fabrics (“Mobus”) as part of growing its income portfolio.
Harworth purchased the c.65,000 sq. ft unit off Russell Way, close to Junction 25 of the M62, in October for £3.6million. It subsequently undertook two months of refurbishment works to bring the property up to standard, including refurbishment of the office accommodation and energy efficiency works including roof repairs and installing new gas heaters to the warehouse.
The lease with Mobus was negotiated and agreed in parallel, which included Harworth working with Calderdale Council to extend the site’s permitted use and to agree a noise management plan in order to support Mobus’ operation. The final lease, agreed earlier this month, is for a 10-year term, at a rent of £5.22 psf – representing a Net Initial Yield on the purchase of 9.44%.
Gent Visick advised Harworth Group, whilst Metcalfe Commercial advised Mobus Fabrics.
“This deal showcases the best of Harworth: properly asset managing a previously unloved asset in a short amount of time, providing a good home to a growing manufacturer whilst generating strong recurring income back to the business. We remain keen to make further similar income-producing property purchases in 2020.”Naomi Fenwick-Goldthorpe, Head of Business Space at Harworth Group
“After enjoying sustained growth the company has started to experience difficulties operating from four separate warehouses. Taking a long-term letting for the Russell Way unit will enable us to consolidate the whole operation onto one site, resulting in greater efficiencies & improved customer service. This superb building will allow Mobus to continue to generate revenue growth & to enlarged our market share.”Mike Presley Chairman of Mobus Fabrics