Land regeneration firm Harworth Group has completed three transactions that will generate additional net recurring income of £564,000 a year.
Harworth has agreed a 20-year pre-let with the UK Atomic Energy Authority for a 25,000 sq ft bespoke fusion technology research facility at the Advanced Manufacturing Park in Rotherham.
In a second deal, Harworth has acquired a 65,156 sq ft commercial unit on a 7-acre site in Brighouse, West Yorkshire, close to Junction 25 of the M62, for £3.6m. The third deal is in Lancashire.
The Rotherham-based firm said the three deals are part of its stated strategy to grow its income portfolio whilst improving its quality and resilience.
The UK Atomic Energy Authority deal at the Advanced Manufacturing Park in Rotherham will complete in September 2020. Harworth said the agreed rent is in line with existing headline rents for the park.
The facility will be used to support the UK Atomic Energy Authority’s research and development into the commercialisation of nuclear fusion as a source of sustainable energy. Construction will begin in January.
As part of the Brighouse deal, Harworth has entered into an agreement for lease with Mobus Fabrics for a 10-year term, which is expected to start in January 2020.
The company has also re-let a 135,000 sq ft unit at its Walton Summit Business Park in Preston, Lancashire to H Parkinson Haulage on a 3-year lease. The rent agreed reflects a 7.6 per cent uplift on the previous rent paid.
Harworth's chief executive Owen Michaelson said: "Growing the size and quality of our recurring income portfolio remains a strategic priority for the business, acting both as a source of value gain and improving Harworth’s long-term resilience.
"We look forward to taking advantage of further income-producing opportunities over the next few months.”
Chief Operating Officer Ian Ball added: “These three new deals, achieved at or above market rents, demonstrate the strong local occupier relationships of our team, whilst also reflecting the maturity of the business in growing its recurring income stream from: the direct development and letting of new commercial space; the effective acquisition and letting of investment assets; and the active asset management of our underlying business space portfolio.”
Harworth will publish a year-end trading update on January 21.
Analysts at Peel Hunt said Harworth appears to be ideally positioned with its aim to become “the leading land and property regeneration specialist in the North of England and Midlands”.