In 2021, we outlined our strategy to reach £1bn of EPRA NDV by 2027, focused on four key drivers of growth.
1. Increasing direct development of industrial & logistics sites
Harworth is an experienced developer, having built 1.3 million sq. ft of industrial & logistics space since 2015. We have a significant committed industrial & logistics development pipeline ahead of us, with schemes in strong locations that are attractive to both investors and occupiers.
What we will do
We aim to undertake the direct development of much of our consented pipeline, scaling up from an average of 200,000 sq. ft per annum between 2015 and 2021 to an average of 800,000 sq. ft per annum by 2027.
We intend to manage the market risk associated with such development by combining pre-letting and selective land sales with speculative development. This programme of development will be funded by a mixture of project debt, cash generated from wider portfolio sales, our core banking facilities, and site-specific use of joint ventures.
Link to principal risks
- Supply chain cost inflation and constraints
- Supply chain and delivery partner management (counter party risk)
- Statutory costs of development
- Residential and commercial markets
- Resourcing
- Availability of appropriate capital
- Managing climate change transition
Key Performance Indicators
- Total Return
- Net Asset Value and EPRA NDV
- Industrial & logistics space developed
- Total industrial & logistics pipeline
2. Accelerating sales and broadening the range of our residential products
Harworth’s residential land portfolio is significant and has the ability to deliver around 29,000 housing units into the market.
What we will do
Our specialist in-house mixed tenure team will identify opportunities to develop tenures such as single-family build-to-rent housing, affordable housing and senior living accommodation across our sites. These will be delivered through a variety of funding mechanisms with selected partners.
Through a combination of increased plot sales through Harworth’s traditional “build-to-sell” markets and new residential products, our ambition is to double sales to around 2,000 plots per annum by 2026.
Link to principal risks
- Supply chain cost inflation and constraints
- Supply chain and delivery partner management (counter-party risk)
- Statutory costs of development
- Residential and commercial markets
- Availability of appropriate capital
- Managing climate change transition
Key Performance Indicators
- Total Return
- Net Asset Value and EPRA NDV
- Number of plots sold to housebuilders
- Total residential pipeline
3. Growing our strategic land portfolio and land promotion activities
Our existing landbank of approximately 14,000 acres underpins our ability to deliver our strategy. Around a third of the residential plots and sq. ft that it provides are already consented. We take a long-term view on replenishing our stock, focusing resources on securing a significant future pipeline which will deliver our continued growth.
What we will do
We target maintaining a 12-15 year land supply at any time. Organic growth will be supplemented by developing key partnerships to assemble and deliver large scale regeneration schemes with the potential also for larger acquisition opportunities which may present themselves.
Link to principal risks
- Availability of and competition for strategic land sites
- Residential and commercial markets
- Resourcing
- Availability of appropriate capital
- Managing climate change transition
Key Performance Indicators
- Total Return
- Net Asset Value and EPRA NDV
- Total industrial & logistics pipeline
- Total residential pipeline
- Potential GVA that could be delivered from our portfolio
4. Repositioning our Investment Portfolio to modern Grade A
Our Investment Portfolio is integral to the way that we fund our business. The portfolio benefits from robust operational metrics and a diverse occupier base.
What we will do
We will largely retain the assets that we directly develop, while disposing of those assets where we have maximised value through the completion of asset management initiatives. This approach will progressively reposition our Investment Portfolio to modern, high-quality Grade A assets with good access to infrastructure and proximity to urban centres.
Link to principal risks
- Residential and commercial markets
- Resourcing
- Managing climate change transition
Key Performance Indicators
- Total Return
- Net Asset Value and EPRA NDV
- Proportion of our Investment Portfolio that is Grade A
- Scope 1, Scope 2 and selected Scope 3 emissions