Business
Acquisition of Towngate Business Park
Acquisition of Towngate Business Park.
About this update from Harworth Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2023U\n Harworth Group PLC\n 01 April 2021\n \n \n \n \n \n \n \n \n \n \n 1 April 2021\n \n \n \n Harworth Group plc\n \n \n \n \n Harworth completes £12.7 million acquisition of Towngate Business Park in Widnes, Cheshire, for income portfolio\n \n \n \n \n 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 £12.7 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. \n \n \n \n \n \n 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 £958,000 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.\n \n \n \n \n \n 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. \n \n \n \n \n \n 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.\n \n \n \n \n \n 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 £3.35 million sale of Lynfield Park, the former Alcan Rio Tinto smelter in Northumberland, in February 2021, ahead of book value.\n \n \n \n \n \n At 31 December 2020, Harworth's Business Space portfolio of predominantly industrial and ...