Harworth Group plc, a leading regenerator of land and property for sustainable development and investment, announces the sale of Towngate Business Park, Widnes and Four Oaks Business Park in Walton Summit, Preston, for a combined consideration of £35.8m, reflecting a blended net initial yield of 4.7%, and at prices in line with December 2022 valuations.
Towngate Business Park was sold for £11.2m, and the disposals at Four Oaks Business Park comprised a multi-let unit sold for £12.3m and a single unit sold for £12.3m.
Following these transactions, Harworth’s Investment Portfolio sales completed so far this year total £48.4m, at prices in line with December 2022 valuations. They form part of the Group’s key strategic objective of transitioning its Investment Portfolio to 100% modern Grade A by 2027, by largely retaining the assets that it develops while disposing of those where value has been maximised through the completion of asset management initiatives. Following these disposals, the Investment Portfolio is now 27% Grade A (31 December 2022: 18%).
The sale proceeds will be used to pursue other elements of Harworth’s growth strategy, including its objective of increasing the direct development of industrial & logistics space. The Group developed 432,000 sq. ft in 2022, of which 65% is now let, and a further 110,000 sq. ft so far in 2023, of which 35% is now let. Development of a further 93,000 sq. ft is currently underway at the Advanced Manufacturing Park in Rotherham, with construction of an additional 73,000 sq. ft pre-let and built-to-suit unit at the site expected to commence shortly.
“Last year Harworth directly developed a record amount of sustainable Grade A industrial & logistics space, as we progressed our growth strategy to become a £1bn business by 2027. As we retain more of these high-specification units, we have sought to recycle capital from the disposal of older assets where we have maximised value creation through asset management and development works, and our sales at Widnes and Preston demonstrate this pillar of our strategy in action. These transactions also demonstrate continued demand for high-quality industrial & logistics assets from investors.”Lynda Shillaw, Chief Executive, Harworth Group plc