Sale of Ansty strategic land site for £53.5m

RNS Number : 9663V

Harworth Group PLC

17 December 2021

 

Harworth Group plc

("Harworth" or the "Company")

Sale of Ansty strategic land site for £53.5 million

Harworth Group plc, a leading regenerator of land and property for sustainable development and investment, announces that it has conditionally exchanged contracts for the sale of its strategic land site in Ansty, Warwickshire, to SDI Propco (100) Limited (the "Purchaser"), for a consideration of £53.5 million, payable in cash upon completion.

Completion of the transaction is conditional on the granting of hybrid planning permission.  Harworth and the Purchaser are working in collaboration to begin the planning process.

The Ansty site extends to 278 acres and is adjacent to Junction 2 of the M6, connecting to the M69. Harworth first acquired land at the site in October 2019 and has been undertaking land assembly works during the past two years. The site had a valuation of £23.9 million as at 30 June 2021 and, owing to its status as strategic land awaiting development, generated no income in the six months to 30 June 2021.

Harworth intends to use the proceeds from the sale for general business purposes, aligned to its recently announced strategy to double the size of its business over the next five to seven years. This sale constitutes a class 2 transaction for the purposes of the Financial Conduct Authority's Listing Rules.

Further progress across the portfolio in the fourth quarter

Elsewhere across its portfolio, Harworth has had an active final quarter of 2021. This includes exchanging on the sale of its Kellingley major development site for £54.0 million, as announced on 9 November, and:

· the acquisition of a 107-acre strategic land site in Rothwell, Northamptonshire;

· the sale of land for a 340,000 sq ft industrial & logistics unit at Gateway 36, Barnsley;

·   two land parcel sales at its residential development site in South East Coalville, Leicestershire, together representing 314 housing plots; and

· a land parcel sale at its residential development site in Moss Nook, Merseyside, representing 258 housing plots.

Lynda Shillaw, Chief Executive of Harworth, commented : "Our Ansty site demonstrates Harworth's unique skills in acquiring and assembling land in locations that are strategic employment hubs within the regions in which we operate.

"By working with a large strategic occupier, this sale enables us to accelerate delivery of this site. The proceeds will be recycled into progressing development activities across our sites and making acquisitions, such as the Rothwell site that we acquired last month.

"Together with our strong sales activity across our major development sites in the final quarter of 2021, these transactions underline how we are already delivering on our recently announced strategy to double the size of our business over the next five to seven years."

For further information

Harworth Group plc
Lynda Shillaw (Chief Executive) Tom Loughran (Head of Investor & Stakeholder Relations)	T: [phone] E: [e-mail]
FTI Consulting
Dido Laurimore Richard Gotla Eve Kirmatzis	T: [phone] E: [e-mail]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. The person responsible for making this announcement on behalf of Harworth is Chris Birch, Company Secretary.

About Harworth

Listed on the Premium Segment of the Main Market, 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 15,000 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 residential and industrial & logistics developments. Visit www.harworthgroup.com for further information.

LEI: 213800R8JSSGK2KPFG21

 

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