We have steadily developed our Income Portfolio over time, blending a mixture of lease income from our Business Park units with income from long-term tenancies on low-carbon energy developments and from the sale of minerals and aggregates that arise from the remediation process. This is increasingly becoming supplemented by income from new commercial units we are constructing across selected development sites in Rotherham, Bolton and Barnsley.
We have historically held six Business Parks across the North and the Midlands on former Colliery sites, covering 0.85m sq. ft of consented commercial property and 736 acres of land. We have been able to exploit the industrial assets on these sites, including substantial utilities infrastructure such as rail connections and high power capabilities, in attracting a range of long-term tenants including international firms such as DB Schenker, Siniat and Network Rail. Our purchase of the mutli-let Sinfin Business Park in Derby in 2015 in addition to later purchases of Advantage House, NuFarm and Four Oaks Business Park – to name a few – supplemented this income, with our lettable built space now standing at over 2.5m sq ft.
We are also becoming increasingly known for what we can build for commercial occupiers, delivering much-needed commercial space across the regions whilst also providing long-term income for the company. We built three units to order at Gateway 36 in Barnsley, with Barnsley Council taking a head-lease on all three units from practical completion in February 2016. We have followed this up by speculatively developing more commercial space totalling c 180,000 sq. ft at the AMP, Logistics North and Gateway 36 and our intention is to hold these units to further grow and develop our income base.
We have also widened our income portfoltio through working with a range of low-carbon energy developers over the past five years, particularly those developing solar and wind farms and given our land portfolio, extracting energy from coal mine methane – resulting in rental returns and royalties from the energy generated. Companies such as Anesco, Conergy, Alkane, Infinis and John Laing Infrastructure have completed renewable developments on our land and signed long-term leases; 159.7MW of energy capacity is now installed on our land, enough to power around 45,000 family homes and providing a long-term income to Harworth.
Our in-house Operations team is also expert at material recovery and selling this to the wider market. Coal slurry, metals, concrete and fill material have all been sold by the company in recent years, with the materials used to fuel power stations, for roadbuilding and for land rehabilitation. The team was able to extract and sell over 1m tonnes of coal slurry to a range of power station operators between 2011 and 2015, extracting value from a product that was previously considered as waste.
Each of the case studies below provide a snapshot of different parts of the portfolio.