Momentum builds at listed property group

Property regeneration and investment business, Harworth Group, says it achieved a strong operational performance throughout 2021, backed by tailwinds from a “buoyant” market.

Issuing a trading update for its financial year ended 31 December 2021, the Rotherham-headquartered firm says its industrial & logistics pipeline as of 31 December 2021 totalled 28.2 million sq ft (31 Dec 2020: 27.3 million sq. ft) of which 7.3 million sq ft had gained consent.

Lynda Shillaw, chief executive, said: “Harworth continued its strong momentum in the second half, as we stepped into our ambitious strategy to double the size of the business over the next five to seven years, and continued to deliver places where people want to live and work.

Lynda Shillaw

“In addition to the significant progress made during the second half across planning, direct development, lettings and land sales, we agreed terms for the conditional sales of our Ansty strategic land site and Kellingley development site, at significant premiums to book value.

“The proceeds from these sales once completed, alongside the larger senior debt facility we are currently finalising, should provide us with additional firepower to deploy across our development sites and near-term acquisition pipeline.”

The group’s residential pipeline as of 31 December 2021 totalled 30,804 plots (31 Dec 2020: 30,668 plots), of which 9,978 plots had received consent.

And the company’s Investment Portfolio continues to deliver robust results, with 99% of rents relating to FY21 now collected.

Harworth says it intends to deploy both proceeds from sales and the funds provided by its new debt facilities to deliver the 3.2 million sq ft first phase of direct development that it has identified within its consented industrial & logistics pipeline.

It will also use the money to broaden the range of residential products across its development sites – including the launch of a 600-unit single-family rental product in 2022 – and to scale up its land acquisition and promotion activities.