Rotherham's Harworth Group raises £27.8m to expand strategic land bank

Harworth, the Rotherham-based brownfield regeneration and property investment specialist, has conditionally raised £27.8m in order to accelerate the expansion of its strategic land bank.

The company raised the finances by placing 29,226,974 new ordinary shares of 10 pence each at a price of 95 pence per Placing Share.

Harworth recently entered into four option agreements to acquire, in aggregate, approximately 200 acres of strategic land, the masterplans for which are expected to deliver over 1,500 residential plots and 600,000 sq. ft. of new commercial space.

To complete the deals, the company requires approximately £19.2m to exercise the options and fund the first three years of expenditure on planning, remediation and infrastructure works, and further site assembly.

With the placing, Harworth is also increasing its strategic land bank to approximately 2,750 acres, including 10,429 consented residential plots and approximately 10.4 million consented sq. ft. of commercial space, assuming the Option Agreements are exercised following confirmatory due diligence.

Four further potential strategic land opportunities are in negotiation, to acquire up to 407 acres of strategic land for both residential and commercial development, requiring approximately £15.5m investment.

Investec and Canaccord Genuity are acting as joint bookrunners and joint brokers to the Placing.

Owen Michaelson, Harworth chief executive commented: “An important part of our strategy is to replenish our land and property portfolio, both by securing new recurring income streams and to grow and expand our strategic land bank, which is fundamental to us continuing to deliver value to our shareholders.

“While we have made good progress in the past two years in securing valuable acquisition opportunities, today’s Placing enables us to accelerate our acquisition strategy through the funding of the purchase of, and investment in, further sites to support the long term growth prospects of the business.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →