Property firm disposes of commercial units in £15.8m deal
Regeneration and property investment firm Harworth Group has sold all five of its built commercial units at its Gateway 36 Business Park in Barnsley for £15.8m.
The units, which total 145,248 sq ft, have been sold to Cadogan Income Properties, reflecting a net initial yield of 4.76% at a price above book value. Harworth also owns 110 acres of land neighbouring Gateway 36, which it plans to bring forward through the planning system for a major new mixed-use development from 2019.
Harworth said the disposals demonstrated the company’s active churn strategy of its more mature assets, allowing it to recycle the capital into both direct development opportunities and income-producing assets to improve the quality, diversity and resilience of its recurring income and to support its aim of delivering a double-digit total return to shareholders.
Owen Michaelson, chief executive of Harworth Group, said: “In just over four years and through the leveraging of our regional leading remediation expertise, we have transformed a vacant 14-acre brownfield former colliery site with no active planning status into an established multi-let business park in what is a key growth area for Barnsley. This freehold sale of those five units is a great example of the company’s ability to maximise the value of its underlying portfolio by delivering new commercial developments, sustaining the company’s growth whilst supporting economic growth in the regions.”
Less than one mile from Junction 36 of the M1 in Barnsley, the sale comprises four fully-let industrial/warehouse units and one drive-thru retail unit, all developed and let by Harworth between 2015 and 2018. The units are let on long-term leases to Barnsley Metropolitan Borough Council, Motor Depot and Fieldrose.
Proceeds from the sale will be used to fund future acquisitions for Harworth’s Business Space and Natural Resources portfolios and direct development and asset management opportunities on its existing sites.
