Last checked at 4 May 2017 07:00
4 May 2017
Harworth Group enters into joint venture to deliver next phase of Logistics North
Harworth Group plc ("Harworth" or the "Group"), the brownfield regeneration and property investment specialist, is pleased to announce that it has entered into a joint venture with Lancashire County Pension Fund ("LCPF") to develop the next phase of the Group's Logistics North site, the largest live commercial development in the North West of England.
The joint venture, known as Multiply Logistics North Limited Partnership ("Multiply Logistics North"), is expected to deliver ten commercial units totalling approximately 564,000 sq. ft., across 31.2 acres. The transaction will unlock a development profit for Harworth as well as realising the land value. The land will be sold to, and then developed by, Multiply Logistics North. LCPF will fund 80% of the acquisition and development costs, with Harworth funding the remaining 20%. The parties will take corresponding interests in Multiply Logistics North. Harworth will also manage the development and assets for the joint venture in return for separate development management and asset management fees.
The new commercial units, which will be delivered to an agreed institutional specification, will be constructed in three stages. The first stage will see three units, ranging from 45,000 sq. ft to 64,000 sq. ft, constructed by the end of December 2017, with Buckingham Group already appointed as principal contractor. The second stage will deliver six new units, ranging from 19,000 sq. ft to 149,000 sq. ft, during 2018, with the final unit of 131,000 sq. ft to be constructed in the third stage. All units will be made available for leasehold occupation upon completion.
The joint venture is the seventh deal to be completed at Logistics North in the past three years, following freehold land sales to Aldi, Lidl, MBDA, Joy Global and Exeter Property Group, and Harworth's forward funding agreement with M&G Real Estate to build two new units - Logistics 225 and Logistics 175. Whistl took a ten-year lease on Logistics 225 in January 2017, following its practical completion a month earlier.
LCPF was advised by the Local Pension Partnership and Knight Frank Investment Management, whilst Harworth was jointly advised by JLL and B8 Real Estate.
Owen Michaelson, Chief Executive of Harworth, said:
"We are delighted to have secured this joint venture with the Lancashire County Pension Fund - our first with a UK Pension fund. This is an innovative and strategic partnership which will further enhance our income portfolio and support our NAV growth, as well as providing separate development and asset management fees. We look forward to working with LCPF to maximise the potential of the site for the benefit of all and delivering more high quality industrial and logistics space in the North West."
-ENDS-
Enquiries:
Harworth Group plc | T: 0114 349 3160 / 07825 860215 |
Iain Thomson | E: ithomson@harworthgroup.com |
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Cardew Group | T: 020 7930 0777 |
Emma Crawshaw Shan Shan Willenbrock |
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NOTES TO EDITORS
About Harworth Group
Listed on the main market, Harworth Group plc (LSE: HWG) is a leading brownfield regeneration and property investment specialist which owns and manages a portfolio of approximately 22,000 acres of land over 140 sites located throughout the Midlands and North of England. The Company specialises in the regeneration of former coalfield sites and other brownfield land into employment areas, new residential developments and low carbon energy projects.
Logistics North is the North West of England's largest live commercial development, with consent in place to deliver 4 million sq. ft. of commercial space over 250 acres next to junction 4 of the M61.
http://www.harworthgroup.com
http://www.logisticsnorth.com