Harworth has exchanged contracts for the conditional sale of 19.4ha of land at its Skelton Grange site in Leeds to MSFT MCIO Limited (Microsoft) for a total consideration of c. €124.7m, payable in cash in two tranches linked to phased completion of the sale. The conditions are customary for a transaction of this nature and the Group is confident they will be met. The disposal price represents a premium to the Disposal Plot’s book value.
The Disposal Plot consists of two adjacent land parcels. Plot 1 covers c. 11ha and will be sold for c. €67.6m. The sale completion is aimed at the second half of 2024. The book value as of 31 December 2023 was €47.6m. Plot 2, comprising c. 8.5ha, will be sold for about €61.1m. The sale completion is targeted for the first half of 2026. The book value as of 31 December 2023 was €15.8m, with forecast servicing costs totalling €6.1m.
Harworth intends to use the net proceeds to support an increased focus on the direct development of Grade A Industrial & Logistics properties from its strategic landbank which will be transferred to and then retained in its Investment Portfolio, driving an increase in recurring earnings, alongside new investment opportunities.
Image source - Pexels.
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