Developer invests £14.4m in land acquisitions

Property group Harworth has bought two sites in the Midlands for a total of £14.4m as it expands its land bank.

The Sheffield-based developer has used some of the £27.1m it raised in an equity placing in March.

The sites also sit next to existing Harworth landholdings, creating additional value for the land.

Harworth’s chief executive Owen Michaelson said: “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.

“The outlook in the Midlands market remains healthy, driven by comparatively low prices, a lack of housing land supply and the scarcity of good quality new commercial units.”

Michaelson expects Harworth to have used the rest of the funds raised in March by its year end and said “good progress has also been made in securing other land and property targets”.

Today’s deals are for a 145-acre site in Coalville, Leicestershire, that has planning consent for 914 residential plots, and an 88-acre site at Chatterley Valley, Staffordshire, which sits within an enterprise zone and has extant planning consent for 1.2m sq. ft of commercial development.

These deals bring the total number of consented residential plots currently under Harworth’s ownership to more than 10,000, alongside 11.2m sq. ft of consented commercial development space.

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