Harworth Estates lands £65m bank deal

HARWORTH ESTATES has completed a £65m refinancing of its bank facilities after Coalfield agreed a takeover deal with the company earlier this week.

The Yorkshire-based business is a new customer of The Royal Bank of Scotland’s (RBS) real estate team covering Yorkshire and the North East.

Harworth said the bank’s facility provides more appropriate commercial terms to the business, allowing it to deliver its objectives in developing its key strategic sites across the North of England and the Midlands.

These include further housing and commercial developments as well as low-carbon energy projects being brought forward to support the UK’s future economic growth.

Harworth Estates is one of the largest property and regeneration businesses across the East Midlands, Yorkshire and the North of England, owning and managing a diversified portfolio of approximately 27,000 acres across some 200 sites valued at nearly £300m.

The £150m reverse take over deal, which was announced last month and completed on Tuesday, saw Coalfield Resources acquire 75.1% of the shares in Harworth Estates from the Pension Protection Fund to add to its existing shareholding as it became the sole shareholder.

Mike Richardson, finance director of Harworth Estates, said: “We became RBS clients as we had full confidence that the RBS team understood our future business plan and delivered a flexible facility to match. The new facility with RBS creates a senior financing platform to enable the Harworth Estates business to drive further shareholder value from both its existing real estate portfolio and the wider real estate markets.”

David Salisbury, head of real estate Yorkshire and the North East at RBS, said: “We are delighted to support Harworth Estates on this funding arrangement. The business is committed to creating developments which enhance local communities and we look forward to working with Harworth Estates in the future.”