Business
Acquisition of two strategic land sites
Acquisition of two strategic land sites.
About this update from Harworth Group Plc
[{"type":"text","content":"\n \nRNS Number : 4854Y Harworth Group PLC 06 December 2017 \n\n6 December 2017\n \n \nHarworth Group plc (\"Harworth\" or the \"Company\")\n \nHarworth completes deployment of equity raise proceeds with two further site acquisitions\n \nHarworth Group plc, the brownfield regeneration and property investment specialist, announces that it has purchased two strategic land sites, in Droitwich and Doncaster, for a total consideration of £8.2 million. The sites have been purchased using the remaining proceeds from the £27.1 million equity placing in March 2017. Both are forecast to support Harworth's ongoing delivery of a double-digit target internal rate of return and significant value appreciation.\n \n131-acre land acquisition close to Junction 5 of the M18, Doncaster\n \nHarworth has purchased a privately sourced 131-acre site in Doncaster, South Yorkshire, for £3.0 million plus acquisition costs, with an option agreement for a further 131 neighbouring acres. Adjacent to Junction 5 of the M18, Harworth will leverage its market leading land regeneration skills to promote the site through the planning process, to deliver a regionally significant employment scheme, totalling up to 2.4m sq ft of distribution, manufacturing and engineering space.\n \nIndustrial Estate, Droitwich, Worcestershire\n \nHarworth has purchased an 8.7-acre site at Berry Hill Industrial Estate in Droitwich, Worcestershire, from DHL, for £5.2 million plus acquisition costs. Three miles from Junction 5 of the M5, the site currently comprises a 112,416 sq ft commercial unit, that has immediately been leased back to DHL. The five-year term at a passing rent of £450,000 per annum represents a net initial yield of 8.15% and a reversionary yield of 8.65%, supporting the Group's strategy of increasing and improving the quality of its recurring income base, whilst in the longer-term, the site's very low density of 30% provides attractive upside opportunity for a whole or partial site redevelopment.\n \nThe two acquisitions follow the three strategic land purchases completed in August 2017 across the Midlands and North West; Chatterley Valley in Stoke-on-Trent; Coalville in Leicestershire; and Wingates in Bolton. These five transactions plus acquisition costs and initial planning & infra...