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(Alliance News) - Property developer Harworth Group PLC said Tuesday it has adjusted its property portfolio following the purchase of an industrial unit and sale of a freehold land.
The first transaction was the purchase of a 253,352 square feet industrial unit in Sherburn-in-Elmet, Yorkshire, for the GBP9.2 million with a net initial yield of 8.1%. There is an existing 10.5-year lease on the unit with Esterform Packaging Ltd.
The second transaction by Harworth was the sale of the freehold for its solar portfolio, consisting of seven former Colliery sites in Yorkshire, Nottinghamshire and Derbyshire.
The land totals 251 acres, and will be sold to solar energy Lightsource BP for GBP5.0 million, representing a net initial yield of 4.6%.
"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%," said Chief Executive Officer Owen Michaelson.
Shares in Harworth - which is based in Rotherham - were up 3.9% at 144.35 pence in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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