THE Harworth Group today revealed it had sold the freehold for seven former colliery sites.
Harworth Group, which is a regenerator of land and property for development and investment, has announced the completion of two transactions.
It has completed the purchase of an industrial unit in Yorkshire for £9.2 million and sold a portfolio of freehold land on which the company acted as landlord for seven solar developments for £5.0 million.
Both deals form part of the company’s strategy of recycling capital out of its more mature income assets into new assets with greater return potential.
Harworth has purchased a 253,352 sq. ft industrial unit across 12.1 acres in Sherburn-in-Elmet, close to its existing Sherburn Rail Freight Terminal and Kellingley sites, for £9.2 million.
An existing 10.5-year lease is in place with Esterform Packaging Limited, an independent converter of PET (Polyethylene Terephthalate.
In the second transaction, Harworth has sold 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 for £5.0 million.
Owen Michaelson, chief executive officer of Harworth Group plc, 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 whilst 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.”