Last checked at 25 Jun 2020 07:00
25 June 2020
LEI 213800R8JSSGK2KPFG21
Harworth Group plc
HARWORTH GROWS INCOME PORTFOLIO WITH ACQUISITION OF 360,000 SQ FT INDUSTRIAL ESTATE IN THE WEST MIDLANDS
Harworth Group plc ("Harworth" or the "Company"), a leading regenerator of land and property for development and investment, announces that it has acquired Thorns Road Industrial Estate ("Thorns Road"), near Dudley, the West Midlands, from Xandor Automotive Brierley Hill Ltd ("Xandor Automotive"), for £10.1 million plus acquisition costs. The transaction is line with Harworth's strategy to grow its recurring income base through the acquisition of high yielding assets with further asset management potential.
Close to both Dudley and Stourbridge town centres and less than ten miles from Birmingham City Centre, the 20.5-acre site comprises three fully let industrial units totalling c. 360,000 sq. ft and will generate a passing rent of £1.095 million per annum, reflecting a Net Initial Yield of 10.2% and a reversionary yield of 12.75%. The value of the gross assets subject to the transaction is £10.779 million and the consideration will be satisfied by existing financial resources.
On completion of the deal, Xandor Automotive entered into a new 15-year lease for c. 240,000 sq. ft of factory space it currently occupies, whilst also agreeing a short-term lease for an additional c. 15,000 sq. ft unit. Xandor Automotive is a key manufacturer in the West Midlands, employing 230 people. It supplies plastic injection moulded components and fluid conveyance products for premium light vehicles, with customers in the automotive and commercial vehicle industry including JLR, Ford, Denso and Cummings Engineering.
The remaining c. 110,000 sq. ft unit is let to Sunrise Medical Ltd, a leading designer, manufacturer and distributor of mobility products, on a lease expiring in July 2022. The site also includes 4.16 acres of open storage land, providing further asset management potential.
Owen Michaelson, Chief Executive of Harworth, said:
"Our strong financial position means we are well placed to complete high yielding income deals like this, which further improve the income generation and resilience of our portfolio, whilst also providing clear asset management opportunities to generate future value gains. This acquisition also supports our ongoing investment in the real estate that supports manufacturing in the West Midlands, underlining our firm commitment to building and strengthening the communities we work in."
-ENDS-
Enquiries:
Harworth Group plc | FTI Consulting |
Owen Michaelson, Chief Executive | Dido Laurimore |
Kitty Patmore, Chief Financial Officer | Richard Gotla |
Iain Thomson, Head of Communications & IR
| Eve Kirmatzis
|
Tel: +44 (0)114 349 3131 investors@harworthgroup.com
| Tel: +44 (0)20 3727 1000 Harworth@fticonsulting.com
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ABOUT HARWORTH GROUP PLC
Listed on the premium segment of the main market, Harworth Group plc (LSE: HWG) invests to transform land and property into sustainable places where people want to live and work. Harworth owns and manages a portfolio of approximately 18,000 acres of land on around 100 sites located throughout the North of England and Midlands (harworthgroup.com).