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Harworth acquires two key Midlands sites

31 August 2017 08:01

Brownfield land and property developer and investor Harworth has purchased two strategic land sites in the Midlands to accelerate the expansion of its strategic land bank.

Both sites - a 145-acre site in Coalville, Leicestershire and an 88-acre site at Chatterley Valley, Staffordshire - have been purchased using part of the £27.1m raised from the company's equity placing in March.

It said both were projected to deliver returns above Harworth's double-digit target rate of return.

Harworth said the site in Coalville - which neighbours its existing Coalville major development site - was purchased for £11.8m plus acquisition costs.

It said: "The newly acquired site already benefits from planning consent for 914 residential plots and the transaction brings marriage value when combined with Harworth's existing planning consent.

"The deal brings the total number of consented plots at Coalville under Harworth control to 2,016 plots, providing a 15-year development pipeline."

Harworth also exercised its option to purchase the 88-acre site at Chatterley Valley for £2.6m plus acquisition costs This is close to the A500 and neighbours its existing 24-acre freehold site.

Harworth said: "The combined 112-acre site benefits from an extant planning consent for 1.2m sq. ft of commercial development, generating marriage value and providing a 10-year development pipeline.

"It also benefits from Government Enterprise Zone status that provides incentives to potential occupiers."

The group said these deals brought the total number of consented residential plots currently under Harworth's ownership to 10,085, alongside 11.2m sq. ft of consented commercial development space.

Chief executive Owen Michaelson said: "Growing and expanding our strategic landbank is fundamental to delivering continued value to our shareholders and both purchases provide clear long-term value adding opportunities.

"The outlook in the Midlands market remains healthy, driven by comparatively low prices, a lack of housing land supply and the scarcity of good quality new commercial units.

"Good progress has also been made in securing other land and property targets identified in March's equity placing. We therefore expect that all of the funds raised in March will be committed by the year end."

At 8:01am: (LON:HWG) Harworth Group Plc share price was +1.5p at 94p

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