Regeneration specialist Harworth Group has bought Moorland Gate Business Park in Chorley, Lancashire for £4.5m as part of its strategy to build its income portfolio and expand its presence in the North West.
Rotherham-based Harworth said Moorland Gate is its third major purchase in 2016.
The business park is less than three miles from Junction 8 of the M61 and close to Harworth’s Logistics North development in Bolton.
The site area covers 10.75 acres with 125,122 sq ft of built space – 83 per cent of which is industrial and 17 per cent classified as offices.
The acquisition was funded from the company’s cash reserves.
Commenting on the acquisition Harworth’s CEO Owen Michaelson said: “Moorland Gate acquisition is Harworth’s third major purchase of 2016 and reflects our objective to replenish our portfolio with new sites in the regions in which we already operate.
“This well-located investment is an excellent fit to our portfolio being a liquid, income-producing asset with further asset management and development opportunities.”
Existing tenants at Moorland Gate include FDC(Holdings and Stagecoach North West.
Harworth’s freehold purchase price of £4.5m represents a net initial yield of 9.53 per cent. The purchase includes two acres of potential development land that Harworth will look to develop and effectively utilise.
Iain Griffin, acquisitions manager (North) for Harworth, added: “Moorland Gate offers significant potential for Harworth with its development opportunities and a strong existing income base, as well as being well located, both close to the M61 and near our flagship Logistics North development in Bolton.
“With strong demand across the regions for good quality accommodation across a range of unit sizes, central Lancashire offers further opportunities for growth. We have managed to complete this deal within six weeks using cash reserves and we’ll continue to seek other similar income-producing assets and development sites to complement our portfolio in the North West.”
Harworth owns and manages over 22,000 acres of land across 150 sites, ranging from residential development land to commercial properties.