UK developer-investor Harworth Group has announced the sale of Towngate Business Park, Widnes and Four Oaks Business Park in Walton Summit, Preston, UK, for a combined amount of £35.8 mln (€41 mln).
The sales price reflects a blended net initial yield of 4.7%, and is in line with December 2022 valuations.
Towngate Business Park was sold for £11.2 mln, and the disposals at Four Oaks Business Park comprised a multi-let unit sold for £12.3 mln and a single unit sold for £12.3 mln.
Following these transactions, Harworth has completed nearly £50 mln of sales this year. The disposals form part of the Group’s strategic objective of transitioning its Investment Portfolio to 100% modern Grade A by 2027, by largely retaining the assets that it develops while disposing of those where value has been maximised through the completion of asset management initiatives. Following these disposals, the Investment Portfolio is now 27% Grade A (31 December 2022: 18%).
The sale proceeds will be used to pursue other elements of Harworth’s growth strategy, including its objective of increasing the direct development of industrial & logistics space.
The Group developed 432,000 ft2 in 2022, of which 65% is now let, and a further 110,000 ft2 so far in 2023, of which 35% is now let.
‘Last year Harworth directly developed a record amount of sustainable Grade A industrial & logistics space, as we progressed our growth strategy to become a £1 bn business by 2027,’ said Lynda Shillaw, Chief Executive of Harworth Group.
She added: ‘As we retain more of these high-specification units, we have sought to recycle capital from the disposal of older assets where we have maximised value creation through asset management and development works, and our sales at Widnes and Preston demonstrate this pillar of our strategy in action. These transactions also demonstrate continued demand for high-quality industrial & logistics assets from investors.’
