Buoyant market boosts developer’s portfolio value
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Harworth Group has noted in a trading update ahead of its half year results announcement on 14 September that it anticipates its half year portfolio valuation to be materially ahead of current analyst consensus.
The Rotherham-based firm has so far this year secured planning approval to deliver up to 1.1m sq ft of logistics space in Bolton close to its Logistics North scheme and is progressing with the Konect its redevelopment of 151-acre Kellingley Colliery site into a 1.45m sq ft of manufacturing and distribution space. In total the developer’s industrial and logistics pipeline includes 26.3 million sq ft with 9 million sq ft consented.
In the update the business noted that its strong operation performance and the buoyant land market, particularly in the industrial and logistics sectors we fuelling this value growth.
Lynda Shillaw, chief executive of Harworth said: “Harworth has delivered a strong first half performance, advancing planning, development activity, sales and lettings across our portfolio. We continue to see depth of market demand from occupiers and investors for both built stock and, increasingly, strategic land within our industrial and logistics portfolio, as well as for our residential serviced land product. Looking ahead, the review of the business that I commenced shortly after joining is now largely complete, and I look forward to sharing how we see the business evolve as part of our Half Year Results in September.”
Looking ahead the business signed signed contracts this month for the construction of its largest-ever direct development scheme at Bardon Hill, Leicestershire, where it plans to bring forward 332,000 sq ft of logistics and manufacturing space over the next 12 months.
Away from sheds, its residential pipeline comprised 30,655 housing plots at 30 June with 9,855 consented. During the first half of 2021, demand for its serviced residential land product remained high, and we exchanged on sales in-line with, or ahead of, the 31 December 2020 valuations, to a range of housebuilders.
This update comes after Shillaw noted in May that the business had a strong start to the year with demand high.