Manufacturer agrees 10-year lease for 65,000 sq ft unit
Listed property group Harworth has bought an industrial unit in Brighouse and agreed a long-term letting with upholstery fabric manufacturer Mobus Fabrics.
Harworth purchased the 65,000 sq ft unit off Russell Way, close to Junction 25 of the M62, in October for £3.6m. It subsequently undertook two months of refurbishment works to bring the property up to standard, including upgrading the office accommodation and energy efficiency works such as roof repairs and installing new gas heaters for the warehouse.
The lease with Mobus was negotiated and agreed in parallel, which included Harworth working with Calderdale Council to extend the site’s permitted use and to agree a noise management plan in order to support Mobus’ operation.
The final lease, agreed earlier this month, is for a 10-year term, at a rent of £5.22 per square foot – representing a Net Initial Yield on the purchase of 9.44%.
Gent Visick advised Harworth Group, while Metcalfe Commercial advised Mobus Fabrics.
Naomi Fenwick-Goldthorpe, head of business space at Harworth Group, said: “This deal showcases the best of Harworth: properly asset managing a previously unloved asset in a short amount of time, providing a good home to a growing manufacturer whilst generating strong recurring income back to the business.
“We remain keen to make further similar income-producing property purchases in 2020.”
Mike Presley chairman of Mobus Fabrics, said: “After enjoying sustained growth the company has started to experience difficulties operating from four separate warehouses.
“Taking a long-term letting for the Russell Way unit will enable us to consolidate the whole operation onto one site, resulting in greater efficiencies and improved customer service. This superb building will allow Mobus to continue to generate revenue growth and to enlarge our market share.”
