Property specialist snaps up £8.2m strategic sites | Business Doncaster
NEWS  >  Property specialist snaps up £8.2m strategic sites
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6
Dec

Property specialist snaps up £8.2m strategic sites

A brownfield regeneration and property investment specialist has purchased two strategic land sites in Droitwich and Doncaster for £8.2m.

Rotherham-based Harworth Group has bought a 131-acre site in Doncaster for £3m plus acquisition costs, with an option agreement for a further 131 neighbouring acres.

Close to Junction 5 of the M18, Harworth intends to promote the site through the planning process, to deliver 2.4m sq ft of distribution, manufacturing and engineering space.

Harworth also purchased an 8.7-acre site at Berry Hill Industrial Estate in Droitwich, Worcestershire, from DHL, for £5.2 million plus acquisition costs.

The site currently comprises a 112,416 sq ft commercial unit, that has immediately been leased back to DHL.

Owen Michaelson, chief executive of Harworth Group, said: "This is a major milestone for the business which sees the culmination of the successful deployment of all new equity raised in March through the acquisition of two well-located sites that are projected to deliver double-digit returns.  

"Expanding our strategic land bank is a core part of our business strategy of delivering continued value to our shareholders and both purchases provide clear long-term value-add opportunities.  

"In addition, securing a strong covenant at Droitwich adds to our medium-term income stream, as we look to improve the defensive qualities of the portfolio.

"The outlook for our principal markets in the North of England and Midlands remains strong, with a scarcity of good quality new commercial space continuing to drive the allocation of new sites and occupier demand for well-connected new space.

"Both of these purchases directly respond to these requirements as we continue to develop a portfolio of high quality places where people want to live and work."

Business Doncaster looks forward to working with Harworth Group to develop the site.