Harworth Group plc, a leading regenerator of land and property for sustainable development and investment, announces that it has conditionally exchanged contracts for the sale of its Kellingley development site in Selby, North Yorkshire, to HPREF I Konect Investments SARL, for a consideration of £54.0 million, payable in cash upon completion.
The transaction will only complete if all sale conditions are satisfied prior to the long-stop date of 31 August 2022. These conditions include, but are not limited to, the approval of a reserved matters planning application which has been submitted and is currently awaiting determination.
Harworth took control of the 149-acre Kellingley site in 2016, following the closure of the former Kellingley Colliery. It has since undertaken land remediation and masterplanning works, and in 2019, received outline planning consent from Selby District Council for the development of up to 1.4 million sq ft of industrial and logistics space, marketed as ‘Konect’. The site had a valuation of £31.1 million as at 30 June 2021 and generated gross profits of £0.3 million in the six months to 30 June 2021.
Harworth intends to use the proceeds from the sale for general business purposes, aligned to its recently announced strategy to double the size of its business over the next five to seven years.
This sale constitutes a class 2 transaction for the purposes of the Financial Conduct Authority’s Listing Rules.
“Since 2016, Harworth has invested in Kellingley, creating Konect, which benefits from road, rail and canal connectivity, and establishing it as a regionally significant location with the potential to deliver up to 1.4 million sq ft of industrial & logistics space. Once realised, this development will provide significant employment opportunities and stimulate further investment in the surrounding area.
“The completion of this sale, which is conditional on the receipt of a planning approval, would allow Harworth to accelerate the realisation of value from this site. The sale proceeds will be used to continue the build-out of our other development sites, including our consented industrial sites in Yorkshire, and for expanding our strategic landbank, in-line with our recently announced strategy.”Lynda Shillaw, Chief Executive Officer, Harworth Group plc