Harworth grows income portfolio with three deals

 19 December 2019: 7am

LEI 213800R8JSSGK2KPFG21

 Harworth further grows income portfolio with three deals

Harworth Group plc ("Harworth" or "the Company"), a leading regenerator of land and property for development and investment, has completed three transactions that will generate additional net recurring income of £564,000 per annum, as part of its stated strategy to grow its income portfolio whilst improving its quality and resilience.

Harworth has agreed a 20-year pre-let with the UK Atomic Energy Authority ("UKAEA"), for a 25,000 sq. ft bespoke fusion technology research facility, at the Advanced Manufacturing Park ("AMP") in Rotherham. Commencing on practical completion in September 2020, the agreed rent is in line with existing headline rents for the AMP.  The facility will be used to support the UKAEA's research and development into the commercialisation of nuclear fusion as a source of sustainable energy.  Construction will commence next month.

In a second transaction Harworth has acquired a 65,156 sq. ft commercial unit on a 6.9-acre site in Brighouse, West Yorkshire, close to Junction 25 of the M62, for £3.6 million.  It has subsequently entered into an Agreement for Lease with Mobus Fabrics Limited for a 10-year term, intended to commence in January 2020.

The Company has also re-let a 134,780 sq. ft unit at its Walton Summit Business Park in Preston, Lancashire to H Parkinson Haulage on a 3-year lease. The rent agreed reflects a 7.6% uplift on the previous rent paid.

Owen Michaelson, Chief Executive Officer of Harworth Group plc, said:

"Growing the size and quality of our recurring income portfolio remains a strategic priority for the business, acting both as a source of value gain and improving Harworth's long-term resilience.  We look forward to taking advantage of further income-producing opportunities over the next few months." 

Ian Ball, Chief Operating Officer of Harworth Group plc, added:

"These three new deals, achieved at or above market rents, demonstrate the strong local occupier relationships of our team, whilst also reflecting the maturity of the business in growing its recurring income stream from: the direct development and letting of new commercial space; the effective acquisition and letting of investment assets; and the active asset management of our underlying Business Space portfolio." 

Harworth will be publishing a Year-End Trading Update on Tuesday 21st January 2020.

-ENDS-

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ABOUT HARWORTH GROUP PLC

Listed on the premium segment of the main market, Harworth Group plc (LSE: HWG) is a leading regenerator of land and property for development and investment which owns, develops and manages a portfolio of approximately 20,500 acres of land on around 120 sites located throughout the North of England and Midlands. The Group specialises in the regeneration of large, complex sites, in particular former industrial sites, into new residential developments and employment areas (harworthgroup.com).