Harworth Group plc, the property regeneration and investment specialist, has acquired Moorland Gate Business Park in Chorley, Lancashire for £4.5 million as part of its strategy to build its income portfolio and expand its presence in the North West.
The site becomes Harworth’s second active North West scheme, with key deal highlights as follows:
- The freehold purchase represents a Net Initial Yield of 9.53%, with further asset management and development opportunities to be explored
- Moorland Gate is less than 3 miles from Junction 8 of the M61, and close to Harworth’s Logistics North development in Bolton
- The site area covers 10.75 acres with 125,122 sq. ft of built space – 83% of which is industrial and 17% classified as offices; this also includes 2 acres of development land
- The acquisition was funded from the Company’s cash reserves
Commenting on the acquisition Owen Michaelson, Chief Executive Officer, said:
“Moorland Gate acquisition is Harworth’s third major purchase of 2016 and reflects our objective to replenish our portfolio with new sites in the regions in which we already operate. This well-located investment is an excellent fit to our portfolio being a liquid, income-producing asset with further asset management and development opportunities.”
Moorland Gate is a multi-let investment comprising twenty-four lettings totalling 125,120 sq. ft across 11 acres. Existing tenants include FDC (Holdings) Ltd and Stagecoach North West.
Harworth’s freehold purchase price of £4.5 million represents a net initial yield of 9.53%. Funded from cash reserves, the purchase also includes two acres of potential development land that Harworth will look to develop and effectively utilise.
Iain Griffin, Acquisitions Manager (North) for Harworth, added:
“Moorland Gate offers significant potential for Harworth with its development opportunities and a strong existing income base, as well as being well located, both close to the M61 and near our flagship Logistics North development in Bolton. With strong demand across the regions for good quality accommodation across a range of unit sizes, central Lancashire offers further opportunities for growth. We have managed to complete this deal within six weeks using cash reserves and we’ll continue to seek other similar income-producing assets and development sites to complement our portfolio in the North West.”