Harworth Group has sold seven multi-let industrial estates across the North West, Yorkshire and East Midlands for a total of c. €81.2m.
This year the Rotherham-based property developer has disposed of Melton Commercial Park, Towngate Business Centre, Alpha, Selby Energy Park, Sinfin Commercial Park, Four Oaks Business Park, and Moorland Gate Business Park. The multi-let industrial assets had an overall floor area of c 111,500m2 and provided both industrial/warehousing accommodation and open storage areas for occupiers.
Savills advised Harworth on the sales, which are part of the group’s key strategic objective of transitioning its investment portfolio to 100% modern Grade A by 2027. It will do this largely by retaining the assets that it develops while disposing of those where value has been maximised through the completion of asset management initiatives during its ownership. The sale proceeds will also be used by Harworth to pursue other elements of its growth strategy, including its objective of increasing the direct development of industrial and logistics space.
Jonathan Haigh, Harworth's chief investment officer, said: “As we retain more of these high-specification units, we have sought to recycle capital from the sale of our more mature assets such as those in the Pegasus Portfolio. These transactions demonstrate continued demand for high-quality industrial and logistics assets from investors and we are grateful for the Savills team’s support in getting them across the line.”
Peter Cooper-Parry, head of the portfolio investment team at Savills, said: “We are very pleased to have successfully completed the sale of Melton Commercial Park, the final asset in the successful disposal programme for Harworth. Given the economic headwinds and the perception of thin investor demand during this period, we were very encouraged to see solid demand for each of the assets from a range of investors.”
Oliver Foster, head of investment at Savills Manchester, said: “The assets were well positioned to capture interest from both a thematic perspective, with a number offering significant ‘open storage’ opportunities, as well as from the traditional industrial investors where significant capital is targeting multi-let estates in regional locations. These investors are drawn to assets with attractive yield profiles with scope to grow rents.”
