Business
£106.6 million land sale at Skelton Grange
£106.6 million land sale at Skelton Grange.
About this update from Harworth Group Plc
[{"type":"text","content":"\n\n \nHarworth Group plc\n(\"Harworth\" or \"the Group\")\n \n£106.6 million land sale at Skelton Grange for development of a hyperscale datacentre\n \nProceeds will support increased focus on Industrial & Logistics direct development, utilising extensive landbank to grow Investment Portfolio and drive increased recurring earnings\n \nHighlights\n \n\n\n\n\n· Exchanged contracts for the conditional sale of 48 acres of land at Harworth's Skelton Grange site in Leeds for total consideration of £106.6 million\n\n\n\n\n· The disposal site comprises two adjacent land parcels, with completion phased and expected in H2 2024 for plot 1, and H1 2026 for plot 2\n\n\n\n\n· Proceeds will be reinvested into Harworth's Industrial & Logistics development programme, and the Group intends to retain more directly developed prime Grade A properties in its Investment Portfolio\n\n\n\n\n· The Industrial & Logistics sites in the Group's extensive pipeline total 38 million sq. ft., and with 5.5 million sq. ft. of that already in, or about to enter into development, the pipeline has the potential to deliver GDV of £0.8 billion over the next five years\n\n\n\n\n· The Group is targeting an Investment Portfolio of £0.9 billion by the end of 2029; this repositioning and growth is expected to create the opportunity to enhance the income component of shareholder returns\n\n\n\n\n· The Group will continue to create value from sales of serviced land for development, including selectively acquiring and accelerating the delivery of Residential sites to provide a steady funding platform for growth in its core Industrial & Logistics portfolio\n\n\n\n\n· Harworth's development of Skelton Grange clearly demonstrates the value created by deploying its specialist skillset, and balance sheet, and upon completion it is expected to deliver an internal rate of return (IRR) of over 40% and estimated inward investment in excess of £4 billion for the local economy\n\n\n\n\n· Placemaking to create best in class schemes remains at the heart of Harworth's approach to sustainable development, and Harworth remains on track to deliver £1 billion EPRA NDV by ...