Robust demand builds momentum for property business
Property group, Harworth, says it has ramped up its direct development of industrial and logistics stock, in an update released today.
The Rotherham-headquartered business, which will stage its Annual General Meeting this morning, says it has developed 110,000 sq ft of Grade A space so far this year at Gateway 36 in Barnsley, which is already 35% let.
And Harworth’s Investment Portfolio sales completed so far this year total £48.4m.
Following these disposals, and transfers of completed developments of 110,000 sq ft, 27% of the group’s portfolio now consists of Grade A property (31 December 2022: 18%).
Lynda Shillaw, chief executive, said: “Harworth has had strong strategic and operational momentum so far in 2023, against a backdrop of robust demand for serviced and therefore de-risked residential land as well as industrial & logistics assets.
“We have made significant sales from our Investment Portfolio in line with December 2022 valuations which, combined with our direct development of new places, means we are making good progress towards transitioning this portfolio to 100% Grade A.
“Our sustained progress with acquisitions, planning and development across our landbank, as well as our strong financial position, means we are well positioned to continue to drive value for stakeholders and deliver sustainable places where people want to live and work.”
The group is currently working on site with a further 93,000 sq ft of space at the Advanced Manufacturing Park (AMP) in Rotherham, which is due to reach practical completion in autumn 2023.
Construction will begin shortly of an additional 73,000 sq ft pre-let and built-to-suit unit at the AMP, and preparation works are underway to deliver a further 1.8 million sq ft across the group’s portfolio.
Harworth says it is working towards exchange of contracts with selected investment and construction partners for development of a single-family Build-to-Rent (‘BTR’) portfolio.
Meanwhile, its strategic land pipeline continues to grow, with acquisitions representing 1.1 million sq ft of industrial and logistics space completed in the year to date.
The group adds that it currently has planning applications representing 2,040 housing plots and 7.4 million sq ft of space progressing through the planning system and awaiting determination.