Harworth Group Plc - Growing Income Portfolio with Three Deals
Harworth Group Plc
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."