Harworth Group PLC GBP35.8m of Investment Portfolio asset sales (8629Y)
May 10 2023 - 1:00AM
UK Regulatory
TIDMHWG
RNS Number : 8629Y
Harworth Group PLC
10 May 2023
Harworth Group plc
("Harworth" or "the Company")
Harworth completes GBP35.8m of Investment Portfolio asset
sales
Harworth Group plc, a leading regenerator of land and property
for sustainable development and investment, announces the sale of
Towngate Business Park, Widnes and Four Oaks Business Park in
Walton Summit, Preston, for a combined consideration of GBP35.8m,
reflecting a blended net initial yield of 4.7%, and at prices in
line with December 2022 valuations.
Towngate Business Park was sold for GBP11.2m, and the disposals
at Four Oaks Business Park comprised a multi-let unit sold for
GBP12.3m and a single unit sold for GBP12.3m.
Following these transactions, Harworth's Investment Portfolio
sales completed so far this year total GBP48.4m, at prices in line
with December 2022 valuations. They form part of the Group's key
strategic objective of transitioning its Investment Portfolio to
100% modern Grade A by 2027, by largely retaining the assets that
it develops while disposing of those where value has been maximised
through the completion of asset management initiatives. Following
these disposals, the Investment Portfolio is now 27% Grade A (31
December 2022: 18%).
The sale proceeds will be used to pursue other elements of
Harworth's growth strategy, including its objective of increasing
the direct development of industrial & logistics space. The
Group developed 432,000 sq. ft in 2022, of which 65% is now let,
and a further 110,000 sq. ft so far in 2023, of which 35% is now
let. Development of a further 93,000 sq. ft is currently underway
at the Advanced Manufacturing Park in Rotherham, with construction
of an additional 73,000 sq. ft pre-let and built-to-suit unit at
the site expected to commence shortly.
Lynda Shillaw, Chief Executive of Harworth Group plc, commented:
"Last year Harworth directly developed a record amount of
sustainable Grade A industrial & logistics space, as we
progressed our growth strategy to become a GBP1bn business by 2027.
As we retain more of these high-specification units, we have sought
to recycle capital from the disposal of older assets where we have
maximised value creation through asset management and development
works, and our sales at Widnes and Preston demonstrate this pillar
of our strategy in action. These transactions also demonstrate
continued demand for high-quality industrial & logistics assets
from investors."
For further information
Harworth Group plc
Lynda Shillaw (Chief Executive) T: +44 (0114) 349 3131
Kitty Patmore (Chief Financial Officer) E: investors@harworthgroup.com
Tom Loughran (Head of Investor & Stakeholder
Relations)
FTI Consulting
Dido Laurimore T: +44 (0)20 3727 1000
Richard Gotla E: Harworth@fticonsulting.com
Eve Kirmatzis
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 13,000 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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