Harworth Group has bought two strategic land sites next to its existing land holdings in the Midlands.
Both sites have been purchased using part of the £27.1m raised from the company’s equity placing in March and are projected to deliver returns above Harworth’s double-digit target rate of return. Being adjacent to existing Harworth landholdings, the sites also generate marriage value when combined.
The 145-acre site in Coalville, Leicestershire, was bought for £11.8m and has consent for 914 residential plots. It brings the total number of consented plots at Coalville to 2,016, providing a 15-year development pipeline.
Harworth has also bought an 88-acre site at Chatterley Valley, Staffordshire, for £2.6m. Combined with its existing holdings, it now controls 112 acres which have an extant planning consent for 1.2m sq ft of commercial development.
Chief executive Owen Michaelson said: “The outlook in the Midlands market remains healthy, driven by comparatively low prices, a lack of housing land supply and the scarcity of good quality new commercial units.”
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