Harworth also has a strong recurring income stream from revenue derived from existing assets, such as Business Parks and our low-carbon energy portfolio, in addition to holding commercial units that we have recently built ourselves for long-term lease on some of our developments.
Our income-producing assets make up nearly 40% of our property portfolio and we adopt proven asset management techniques through our in-house teams. These assets include a total of 15 business parks and development sites where we receive both rent and service charges – details of which can be found here.
Over the past two years, we have also become adept at constructing and delivering our own commercial units at sites such as the Advanced Manufacturing Park, Gateway 36 and Logistics North – units that are then retained and let. A good example of this approach is the build of three new units in February 2016 totalling 65,000 sq. ft at Gateway 36, which we immediately let to Barnsley Council.
Much of our land portfolio also lends itself to low carbon energy production, being located at sites without good transport access but having significant former grid connections arising from the previous use of land. We have obtained planning permission for these developments and then leasing the land to third party low carbon energy producers including wind and solar development who pay us a royalty on generation during the lifetime of the leases.