Portfolio update

RNS Number : 3836W

Harworth Group PLC

09 February 2017

 

Harworth Group plc

Portfolio Update

Harworth Group plc ("Harworth" or the "Company"), the brownfield regeneration and property investment specialist, is pleased to announce that it has completed a 225,000ft letting to leading postal operator Whistl at its Logistics North development in Bolton.  Additionally, the Company has exchanged contracts with Keepmoat to open up the first phase of housing at its 560 unit Flass Lane development in Castleford, with further sales on other sites expected in forthcoming weeks.

Highlights - Logistics North

·     Harworth has let Logistics 225, a 224,938 sq. ft Grade A Warehouse, to Whistl on a ten-year lease on behalf of M&G Real Estate at a rent of £6.00 psf.

·     The letting was achieved within six weeks of Harworth practically completing the unit after a 30 week build programme ending in December 2016.

·    Logistics 225 and its neighbouring Logistics 175 unit (a 175,000 sq. ft Grade A warehouse) were forward funded by M&G Real Estate.  Both units were constructed by Harworth to an institutional specification and with a BREEAM very good sustainability rating.

·    Under the terms of the funding agreement, Harworth received an open market land value on commencement of the development and a development management fee upon construction.  A 'promote' fee will also be paid to the Company on the final valuation of the investment.

·     Logistics North is one of the North West's largest live logistics and distribution developments, with over 2m sq. ft of space already built or committed to be built since it received outline planning consent for 4m sq. ft in December 2013.

Highlights - Flass Lane

·    Keepmoat has exchanged contracts with Harworth to purchase 9.88 acres of land to build 157 plots at Harworth's Flass Lane development in Castleford for £3.65m. The purchase, which is timed to complete when the primary infrastructure works are finished in the early summer, is the first at the development and will deliver a selection of two and three bedroomed homes over the next 18 months.

·     The wider Flass Lane development has outline consent in place for 560 residential plots, up to 50,000 sq. ft of employment development and associated public open space. 

Commenting on these deals Owen Michaelson, Chief Executive Officer, said:

"These deals mark an excellent start to the year for both our Capital Growth and Income Generation segments of the business.

"We are delighted to welcome Whistl to Logistics North. The deal was completed within six weeks of the unit being practically complete and this, together with the leading regional rental value secured, reflects both the quality of unit we have built on behalf of M&G Real Estate and the quality of Logistics North's location for logistics & distribution businesses.

"We are also pleased to exchange contracts with Keepmoat, which continues our programme of phased sales from our portfolio of sites. We believe the deal is a clear reflection of Harworth's ability to transform land into optimised sites for housebuilding customers. The UK still needs further brownfield land for new housing and ongoing demand in the regional housing markets we operate in remains strong." 

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Enquiries:

Harworth Group plc	T: 0114 349 3160 / 07825 860215
Iain Thomson	E: [e-mail]
Cardew Group	T: 020 7930 0777
Emma Crawshaw Shan Shan Willenbrock Emma Ruttle

About Harworth Group

Listed on the main market, Harworth Group plc is a leading brownfield regeneration and property investment specialist.  It owns and manages over 22,000 acres of land across 150 sites, ranging from residential development land to commercial properties, low-carbon energy schemes and agricultural estates.

Harworth is best known in the North West for delivering Logistics North, the region's largest live commercial development where 4 million sq. ft of consented space will be developed over 250 acres in Bolton.  Occupiers include Aldi and Lidl, who announced in December 2016 that it will be building its new North West headquarters and distribution centre at the site.

 

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