Harworth Group announces new joint venture to deliver next phase of Bolton’s Logistics North site

Harworth Group plc, the Rotherham-based brownfield regeneration and property investment specialist, has entered into a joint venture with Lancashire County Pension Fund (LCPF) to develop the next phase of the Group’s Logistics North site.

The site, which is the largest live commercial development in the North West of England, is located adjacent to Junction 4 of the M61 in Bolton.

The joint venture, known as Multiply Logistics North Limited Partnership, is expected to deliver ten commercial units totalling approximately 564,000 sq. ft., across 31.2 acres.

The land will be sold to, and then developed by, Multiply Logistics North. LCPF will fund 80% of the acquisition and development costs, with Harworth funding the remaining 20%.

The parties will take corresponding interests in Multiply Logistics North. Harworth will also manage the development and assets for the joint venture in return for separate development management and asset management fees.

The new commercial units, which will be delivered to an agreed institutional specification, will be constructed in three stages.

The first stage will see three units, ranging from 45,000 sq. ft to 64,000 sq. ft, constructed by the end of December 2017, with Buckingham Group already appointed as principal contractor. The second stage will deliver six new units, ranging from 19,000 sq. ft to 149,000 sq. ft, during 2018, with the final unit of 131,000 sq. ft to be constructed in the third stage.

All units will be made available for leasehold occupation upon completion.

The joint venture is the seventh deal to be completed at Logistics North in the past three years, following freehold land sales to Aldi, Lidl, MBDA, Joy Global and Exeter Property Group, and Harworth’s forward funding agreement with M&G Real Estate to build two new units – Logistics 225 and Logistics 175.

Whistl took a ten-year lease on Logistics 225 in January 2017, following its practical completion a month earlier.

LCPF was advised by the Local Pension Partnership and Knight Frank Investment Management, whilst Harworth was jointly advised by JLL and B8 Real Estate.

Owen Michaelson, chief executive of Harworth, said: “We are delighted to have secured this joint venture with the Lancashire County Pension Fund – our first with a UK Pension fund.

“This is an innovative and strategic partnership which will further enhance our income portfolio and support our NAV growth, as well as providing separate development and asset management fees.

“We look forward to working with LCPF to maximise the potential of the site for the benefit of all and delivering more high quality industrial and logistics space in the North West.”