Harworth sells former colliery for £54m
Property business Harworth Group has conditionally exchanged contracts for the sale of its Kellingley development site in Selby to a joint venture between Henderson Park a real estate private equity firm and developer Cole Waterhouse for a consideration of £54m, over £20m higher than the sites valuation in June.
The sale requires the completion of a number of conditions including approval of a reserved matters planning application, which has been submitted, by 31 August next year.
As part of the JV which is under the name HPREF Konect Investments SARL, Cole Waterhouse is managing the acquisition, execution, development and leasing of the site.
Kellingley is a 149 acre site which Harworth took control of in 2016 following the closure of the colliery. Since then the developer has undertaken remediation and masterplanning works, receiving outline planning consent from Selby District Council in 2019 to deliver 1.4m sq ft of industrial and logistics space. Branded Konect the site had a valuation of £31.1m as of 30 June 2021.
CGI showing new industrial units on former Kellingley Colliery site in Knottingley
Harworth sold the first plot on the site in January to CRT Property Developments, a subsidiary of The Coalfields Regeneration Trust. Since then CRT has started works on the site and appointed agents to market the 11 individual units, ranging from 3,000 to 4,000 sq which are being delivered.
Harworth has said the proceeds from the sale will be used for general business purposes as it looks to double the size of its business over the next five to seven years.
Lynda Shillaw, chief executive of Harworth, said: “Since 2016, Harworth has invested in Kellingley, creating Konect, which benefits from road, rail and canal connectivity, and establishing it as a regionally significant location with the potential to deliver up to 1.4 million sq ft of industrial & logistics space. Once realised, this development will provide significant employment opportunities and stimulate further investment in the surrounding area.
“The completion of this sale, which is conditional on the receipt of a planning approval, would allow Harworth to accelerate the realisation of value from this site. The sale proceeds will be used to continue the build-out of our other development sites, including our consented industrial sites in Yorkshire, and for expanding our strategic landbank, in-line with our recently announced strategy.”
Christophe Kuhbier, managing director of Henderson Park, said: “This is a rare opportunity to develop a single-ownership logistics estate of scale, designed to the highest technical specifications and with the latest occupier requirements in mind. Amidst the broader fundamentals of the UK logistics sector, we like the dynamics of the Yorkshire submarket, and believe this strategically located site is optimally placed to deliver much needed capacity into the local market. The site is prepared for development, with a significant planning consent obtained, and we are excited to get to work with our partners to create a highly sustainable logistics estate.”
Damian Flood, CEO of Cole Waterhouse, said: “The acquisition of this superb logistics site demonstrates our continued commitment to developing in the industrial and logistics sector. This is our first project with Henderson Park and we are excited to be working with an experienced joint venture partner that shares our focus on sustainable development and creating value. We are actively looking for additional opportunities to bring forward in well located and connected logistics sites across the UK.”
The joint venture was advised on this transaction by Metis Real Estate and Addleshaw Goddard LLP
