Harworth Group has acquired an industrial unit in Yorkshire for £9.2m and sold a portfolio of freehold land for £5m.
The firm has bought a 253,352 sq ft industrial unit on 12.1 acres in Sherburn-in-Elmet, close to Harworth’s existing Sherburn Rail Freight Terminal and Kellingley sites. An existing 10.5-year lease is in place with Esterform Packaging, and the transaction represents a net initial yield of 7%.
Harworth has also offloaded the freehold for its Solar Portfolio – seven former colliery sites in Yorkshire, Nottinghamshire and Derbyshire totalling 251 acres with no further development potential – to Lightsource BP. The deal is priced above 2018 book value and represents a net initial yield of 4.61%.
Owen Michaelson, chief executive of Harworth, said: “Adopting an income portfolio churn strategy is an essential element of delivering market-leading returns and these deals represent this strategy in practice.
”Our operational strength is also strongly in evidence, with the team acquiring a well-located property for our income portfolio with further asset management potential while also using our proven strong property management skills to deliver another portfolio sale at an attractive low exit yield below 5%.
”Both deals show that the regional markets we operate in remain robust.”
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