Harworth Group completes four land acquisitions for £45m

Harworth Group plc, the Rotherham-based regeneration and property investment specialist, has acquired four sites across the North of England and the Midlands in a £45m deal.

Harworth has purchased a 112-acre site at Wyke, Bradford, for £32.45m. Less than a mile from Junction 26 of the M62, the site comprises an agrochemical works set over 32-acres operated by Nufarm UK Limited, alongside 80-acres of unoccupied land.

The site is let on a 50-year lease, commencing October 2005, at a current passing rent of over £2.1m per annum, representing a net initial yield of 6.2% and a reversionary yield of 7.0% based on fixed uplifts.

The company also acquired a 22-acre site in Flaxby, North Yorkshire for £8.75m. Within half a mile of Junction 47 of the A1(M), the site comprises a 276,000 sq ft commercial unit occupied by Ilke Homes Ltd, the modular homes manufacturer.

A 14-year lease has been agreed with Ilke at a stabilised rent of £1m per annum, representing a stabilised net initial yield of 10.9% and a reversionary yield of 12.1%.

As for the Midlands, Harworth acquired two sites totalling 165 acres for a total consideration of £3.88m.

The first site comprises 112 acres of land across three separate parcels near Denby in Derbyshire. The site is currently being promoted through Amber Valley District Council’s Local Plan process as a new residential-led development across 421 acres that could deliver up to 3,000 new homes and 450,000 sq. ft of commercial space.

Finally, Harworth has bought 53 acres of greenfield land in Bardon, Leicestershire, which is adjacent to the company’s existing development at Coalville. Harworth will promote the site through the planning process for a commercial scheme of up to 350,000 sq. ft of manufacturing, distribution and roadside uses.

In total, the acquisitions provide the potential for the development of up to 3,000 homes and over 1m sq ft of commercial space. Harworth will use its master planning and regeneration skills to promote the sites through the planning process and remediate the land ready for future development where applicable.

Owen Michaelson, chief executive of Harworth, said: “These acquisitions and the increase in our financing facilities demonstrate the continued implementation of our strategic priorities.

“We are expanding our strategic land bank to deliver further value to our shareholders through clear, long-term value-add opportunities, whilst both securing additional income and maintaining low gearing and financing headroom to support the continued growth of the business.

“Our confidence in the strength of, and the outlook for, our principal markets in the North of England and Midlands is underpinned by the continued undersupply of new homes and commercial space in the face of high levels of demand from housebuilders and commercial occupiers alike.

“Harworth continues to make a significant contribution to the ongoing economic growth of the regions as one of the UK’s leading regeneration companies.”