Harworth Group PLC Acquisition of Towngate Business Park (2023U)
April 01 2021 - 1:00AM
UK Regulatory
TIDMHWG
RNS Number : 2023U
Harworth Group PLC
01 April 2021
1 April 2021
Harworth Group plc
Harworth completes GBP12.7 million acquisition of Towngate
Business Park in Widnes, Cheshire, for income portfolio
Harworth Group plc, a leading regenerator of land and property
for development and investment, announces the acquisition of
Towngate Business Park, a multi-let industrial estate in Widnes,
Cheshire, from Towngate Plc for GBP12.7 million. The transaction is
in line with Harworth's strategy of growing its income portfolio to
cover its overheads from recurring rental income from investments
which also offer value enhancement opportunities.
Towngate Business Park, a former Golden Wonder food factory,
comprises a total of c. 262,000 sq ft of industrial space, which
has been divided into nine warehouse units, ranging in size from
4,000 sq ft to 77,000 sq ft, and 3.8 acres of open storage. The
asset is fully let and generates rental income of GBP958,000 per
annum with a WAULT of 4.3 years. This reflects a Net Initial Yield
of 7.1% and a reversionary yield of c. 9.4%. Occupiers include
Aggreko UK, Xpel Marketing, Initial Packaging and QA Flooring.
Harworth intends to invest in the estate, leveraging its asset
management expertise to capture rental reversion and explore infill
development opportunities over the medium term.
Located on Everite Road, Widnes, Towngate Business Park provides
easy access to the M62 via the M57 (1 mile) and south to the M56 (1
mile), leading to the M6. Liverpool John Lennon Airport, the Port
of Liverpool and Manchester International Airport are all situated
within a 24 mile radius.
The acquisition has been funded by proceeds from the Company's
active churn strategy in its income portfolio, recycling capital
through the disposal of non-core assets or those where the Group
has completed its asset management business plans. Most recently,
this manifested in the GBP3.35 million sale of Lynfield Park, the
former Alcan Rio Tinto smelter in Northumberland, in February 2021,
ahead of book value.
At 31 December 2020, Harworth's Business Space portfolio of
predominantly industrial and logistics properties, generated
GBP15.7 million of annual rental income with a WAULT of 12.5 years.
The Company continues to target similar income producing
investments, which are in strong locations across its core regions,
as part of its strategy.
Richard Bousfield, Head of Income at Harworth Group, commented
:
"Towngate Business Park is a fantastic addition to our income
portfolio, adding recurring income whilst also presenting asset
management opportunities to generate future value. The acquisition
builds on our ambition to grow our exposure in the North West,
where the industrial market continues to see very high levels of
occupier demand and extremely limited supply which is resulting in
positive rental growth forecasts."
Harworth was advised by Metis Real Estate Advisors and Freeths
LLP. The vendor was represented by B8 Real Estate and Littler
Associates.
-ENDS-
Enquiries:
Harworth Group plc
Jordan Mawbey, Marketing Manager
(07826) 524 583
ABOUT HARWORTH GROUP PLC
Harworth Group plc is a leading regenerator of land and property
for development and investment which owns, develops and manages a
portfolio of approximately 18,000 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
developments and employment areas ( harworthgroup.com ).
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END
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