Harworth grows income with long-term lettings
22 February 2018
Harworth Group plc ("Harworth" or the "Group")
HARWORTH GROWS INCOME WITH SERIES OF LONG-TERM LETTINGS
- Five new lettings signed for commercial space across three sites generating additional recurring income in excess of £1m per annum -
Harworth Group plc, the brownfield land and property developer & investor, has secured five new long-term lettings on its directly developed commercial space at three of its key sites in the North of England, setting new headline rents at each site and growing its recurring, high quality income base by over £1 million per annum. As a result of this activity, Harworth's wholly owned direct developments in its Business Space portfolio are fully let.
Logistics North, Bolton
Harworth has agreed two ten-year leases with Northern Building Plastics Limited and Vaclensa Limited for its C4 and C5 "R-evolution" units at Logistics North in Bolton, totalling 52,871 sq. ft. These lettings, which were completed within two weeks of practical completion in December 2017, were achieved at a new headline rent for Logistics North of £7.00 psf, reflecting the continued strong demand for high quality industrial assets in the region.
Advanced Manufacturing Park, Rotherham
In addition, Harworth has secured two new tenants for its second phase of "R-evolution" units at the Advanced Manufacturing Park in Rotherham which practically completed in April 2017, meaning this scheme is now fully let. The 25,962 sq. ft Unit 8 building is let to Spendor Audio Systems Limited on a 15-year lease, whilst the 15,063 sq. ft Unit 7A is let to British Steel Limited on a 15-year lease. These lettings were achieved at a new headline rent of £7.50 psf at the park. The third phase of construction at "R-evolution" which is underway, comprising 55,750 sq. ft of additional commercial space, is due to practically complete in September 2018.
Gateway 36, Barnsley
Finally, Harworth has successfully leased its final vacant unit at its Gateway 36 development in Barnsley. Leading used car supermarket Motor Depot Limited has taken a 15-year lease at the 75,277 sq. ft "Helix" unit at a headline rent of £5.00 psf.
Owen Michaelson, Chief Executive Officer of Harworth, commented:
"Growing the Group's rental income through the letting of newly built commercial space demonstrates the management-led actions we are taking to deliver our strategic priority of improving the quality and size of our recurring income base.
"These lettings also provide further evidence of the underlying strength of the industrial property market across the North of England, as we continue to see demand for high quality space. We are therefore well positioned to capitalise on the structural drivers of occupier demand and limited supply which is underpinning rental growth in the region. We will look to build out further direct development on our sites in 2018 and beyond."
-ENDS-
For further information:
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Harworth Group plc Owen Michaelson, Chief Executive Officer Andrew Kirkman, Finance Director Iain Thomson, Head of Communications
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T: 0114 349 3131
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FTI Consulting Dido Laurimore Tom Gough Richard Gotla
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T: 020 3727 1000 |
NOTES TO EDITORS:
About Harworth Group
Listed on the main market of the London Stock Exchange, Harworth Group plc (LSE: HWG) ("Harworth") is a leading brownfield land and property developer & investor which owns and manages a portfolio of over 21,000 acres of land on just under 140 sites located throughout the Midlands and North of England. The Company specialises in the regeneration of former coalfield sites and other brownfield land into new employment areas and residential developments.
This information is provided by RNS
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