Harworth acquires new urban logistics estate in Rotherham
By Josh White
Date: Tuesday 08 Oct 2024
(Sharecast News) - Harworth Group announced the completed acquisition of a newly-developed grade A urban logistics estate, 'Catalyst', in Rotherham, South Yorkshire on Tuesday, for £43.7m.
The FTSE 250 company said the 285,000 square foot asset, completed in 2023, reflected a net initial yield of 5.4%.
It said Catalyst was strategically located adjacent to its existing Advanced Manufacturing Park (AMP), offering a prominent position with excellent connectivity to major transportation routes and a large labour pool.
The estate consists of five units, and is currently 90% let to a variety of occupiers, with a weighted average unexpired lease term (WAULT) of 6.6 years to break and 10.1 years to expiry.
Harworth said it was optimistic about securing a tenant for the remaining 28,000 square feet, with the fully-let estate expected to generate £2.5m in annual rent.
The board said the acquisition supported Harworth's broader asset management strategy, aimed at enhancing the value of the wider AMP, where demand remained strong and rents recently surpassed £10 per square foot.
Harworth added that the move aligned with its strategic goal of expanding its investment portfolio to £0.9bn by 2029, with a transition to 100% grade A assets by 2027.
Following the acquisition and the completion of an additional 73,000 square feet of space at the AMP, Harworth's total investment portfolio now stood at 2.8 million square feet, 45% of which is grade A, up from 37% as of June.
"This acquisition, the largest of an industrial and logistics investment asset in Harworth's history, aligns with our strategy to grow our high-quality investment portfolio," said chief executive officer Lynda Shillaw.
"It also continues our track record of strategic site assembly, providing an opportunity to extend the AMP, further establishing it as one of the leading manufacturing and distribution centres in the region.
"Increased direct development and the retention of grade A industrial and logistics assets across our major sites, supplemented by select, income producing acquisitions, is core to our strategy, whilst we will also look to recycle properties where value has been maximised through completed asset management initiatives."
Reporting by Josh White for Sharecast.com.
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