REG - Harworth Group PLC - Acquisition of urban logistics scheme for £43.7m

HarworthAnnouncement

08/10/2024 07:00

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RNS Number : 2470H  Harworth Group PLC  08 October 2024

 8 October 2024
 Harworth Group plc
 ("Harworth" or "the Group")

 Harworth acquires 285,000 sq. ft. newly developed Grade A urban logistics
 scheme in South Yorkshire for £43.7 million

 Harworth, a leading regenerator of land and property for sustainable
 development and investment, has completed the acquisition of Catalyst, a
 285,000 sq. ft., Grade A, urban logistics estate in Rotherham, South
 Yorkshire. The £43.7 million purchase price reflects a net initial yield of
 5.4%.

 The asset, completed in 2023, is strategically located adjacent to the Group's
 flagship industrial development and major UK manufacturing hub, the Advanced
 Manufacturing Park ("AMP"). The acquisition delivers an extension to the AMP
 which now benefits from a highly prominent, extensive frontage on both sides
 of the Sheffield Parkway and its excellent arterial connectivity provides
 access to a vast labour pool.

 Comprising of five units, the scheme is currently 90% let to a diverse range
 of occupiers, with a WAULT of 6.6 years to break and 10.1 years to expiry.
 Harworth is confident of securing a letting for the final 28,000 sq. ft, and
 when fully let the scheme will generate £2.5m of annualised rent. The
 acquisition provides an opportunity to implement tailored asset management
 initiatives and deliver additional value across the wider AMP, where Harworth
 continues to see strong demand from occupiers, and rents have recently
 exceeded £10 per sq. ft.

 The acquisition is in line with Harworth's strategy to grow its Investment
 Portfolio to £0.9 billion by the end of 2029 and transition its core
 portfolio to 100% Grade A by 2027. Following this acquisition, alongside
 practical completion of a further 73,000 sq. ft. of Industrial & Logistics
 space at the AMP earlier this month, the Group's Investment Portfolio will
 total 2.8 million sq. ft., of which 45% is Grade A (30 June 2024: 37%).

 Lynda Shillaw, Chief Executive of Harworth, commented: "This acquisition, the
 largest of an Industrial & Logistics investment asset in Harworth's
 history, aligns with our strategy to grow our high-quality Investment
 Portfolio. It also continues our track record of strategic site assembly,
 providing an opportunity to extend the AMP, further establishing it as one of
 the leading manufacturing and distribution centres in the region.

 "Increased direct development and the retention of Grade A Industrial &
 Logistics assets across our major sites, supplemented by select, income
 producing acquisitions, is core to our strategy, whilst we will also look to
 recycle properties where value has been maximised through completed asset
 management initiatives."

 For further information

 Harworth Group plc
 Lynda Shillaw (Chief Executive)                                T: +44 (0) 7436 167 285
 Kitty Patmore (Chief Financial Officer)                        E: investors@harworthgroup.com
 Luke Passby (Head of Investor Relations & Communications)

 FTI Consulting
 Dido Laurimore                                                 T: +44 (0) 20 3727 1000
 Richard Gotla                                                  E: Harworth@fticonsulting.com
 Eve Kirmatzis

 About Harworth

 Listed on the equity shares (commercial companies) category of the Main Market
 of the London Stock Exchange and a constituent of the FTSE 250 index, Harworth
 Group plc (LSE: HWG) is a leading sustainable regenerator of land and property
 for development and investment which owns, develops and manages a portfolio of
 over 14,000 acres of land on around 100 sites located throughout the North of
 England and Midlands. The Group specialises in the regeneration of large,
 complex sites, in particular former industrial sites, into new Industrial
 & Logistics and Residential developments to create sustainable places
 where people want to live and work, supporting new homes, jobs and communities
 across the regions and delivering long-term value for all stakeholders. Visit
 www.harworthgroup.com for further information. LEI: 213800R8JSSGK2KPFG21.

 

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