Business
Acquisition of two key Midlands sites
Acquisition of two key Midlands sites.
About this update from Harworth Group Plc
[{"type":"text","content":"\n \nRNS Number : 3624P Harworth Group PLC 31 August 2017 \n\n \n31 August 2017 \n \nHarworth acquires two key Midlands sites to grow strategic land bank\n \nHarworth Group plc (\"Harworth\" or the \"Company\"), the brownfield land and property developer & investor, is pleased to announce that it has purchased two strategic land sites in the Midlands to accelerate the expansion of its strategic land bank. Both sites have been purchased using part of the £27.1m raised from the Company's equity placing in March 2017 and are projected to deliver returns above Harworth's double-digit target rate of return. The sites also sit adjacent to existing Harworth landholdings, thus generating marriage value (additional value) when combined.\n \nCoalville, Leicestershire\n \nHarworth has purchased a 145-acre site in Coalville, Leicestershire that neighbours its existing Coalville major development site for £11.8m plus acquisition costs. The newly acquired site already benefits from planning consent for 914 residential plots and the transaction brings marriage value when combined with Harworth's existing planning consent. The deal brings the total number of consented plots at Coalville under Harworth control to 2,016 plots, providing a 15-year development pipeline.\n \nChatterley Valley, Staffordshire\n \nHarworth has also exercised its option to purchase an 88-acre site at Chatterley Valley, Staffordshire close to the A500 that neighbours our existing 24-acre freehold site for £2.6m plus acquisition costs. The combined 112-acre site benefits from an extant planning consent for 1.2m sq. ft of commercial development, generating marriage value and providing a 10-year development pipeline. It also benefits from Government Enterprise Zone status that provides incentives to potential occupiers.\n \nThese deals bring the total number of consented residential plots currently under Harworth's ownership to 10,085, alongside 11.2m sq. ft of consented commercial development space.\n \nCommenting on these deals, Owen Michaelson, Chief Executive Officer, said:\n \n\"Growing and expanding our strategic landbank is fundamental to delivering continued value to our shareholders and both purchases provide clear long-term value adding opportunities.\n \nThe ...