Harworth sells Bilsthorpe Business Park in Nottinghamshire
Harworth Group (Harworth), a leading regenerator of land and property for development and investment, has sold the 283-acre Bilsthorpe Business Park (Bilsthorpe) in Nottinghamshire for a total consideration of GBP4.6 million in two separate transactions.
These disposals continue Harworth’s strategy of recycling capital from the sale of more mature assets into the acquisition of higher yielding properties with asset management and development potential.
The first sale comprised the sale of a 10-acre site, including a Highways Depot let to Nottingham City Council on a long lease, to Waypoint for GBP2.05 million, reflecting a Net Initial Yield of c3.0 per cent.
The remaining mixed-use, 273 acre site was sold to Insite Group for GBP2.55 million, reflecting a c5.5 per cent Net Initial Yield. The site comprises a c22,000 sq ft multi-let industrial estate; a Coal Mine Methane energy generation plant; and 250 acres predominantly low-grade agricultural land.
The disposal follows Harworth’s recent acquisition of Saturn Business Park in Knowsley for GBP26.0 million, reflecting a Net Initial Yield of c7.7 per cent and a reversionary yield of c9.0 per cent.
Throughout 2020 Harworth’s investment portfolio continued to be a strong contributor to the Group’s profits and value gains, whilst also covering the Company’s overheads, generating GBP17.2 million of income per annum at 30 June. In March 2020, Harworth appointed Richard Bousfield as Head of Income Generation to boost its in-house asset management capabilities as it seeks to maximise capital values and rental income across the portfolio. Richard is also responsible for identifying and acquiring additional high-yielding investment opportunities with asset management potential, including the opportunity for further development.
Lynda Shillaw, Chief Executive of Harworth, says: “With Bilsthorpe Business Park having little further development potential, now is the right time to dispose of our historic interest in this site, driving value from our portfolio, freeing capital up to invest in higher yielding opportunities in our core regions, and increasing the resilience of our investment portfolio.”
Richard Bousfield, Head of Income Generation at Harworth, adds: “Swiftly completing these sales has been a key management priority. We will now focus on acquiring higher yielding property with the opportunities for direct development and asset management to further grow the Company’s income portfolio.”