Harworth completes £12.7m acquisition of business park in Cheshire
Harworth Group, a regenerator of land and property for development and investment, has acquired Towngate Business Park, a multi-let industrial estate in Widnes, Cheshire, from Towngate for £12.7m.
The transaction is in line with Harworth’s strategy of growing its income portfolio to cover its overheads from recurring rental income from investments which also offer value enhancement opportunities.
Towngate Business Park, a former Golden Wonder food factory, comprises a total of c.262,000 sq ft of industrial space, which has been divided into nine warehouse units, ranging in size from 4,000 sq ft to 77,000 sq ft, and 3.8 acres of open storage.
The asset is fully let and generates rental income of £958,000 per annum with a WAULT of 4.3 years. This reflects a Net Initial Yield of 7.1% and a reversionary yield of c.9.4%. Occupiers include Aggreko UK, Xpel Marketing, Initial Packaging and QA Flooring.
Harworth intends to invest in the estate to capture rental reversion and explore infill development opportunities over the medium term.
Richard Bousfield, head of income at Harworth Group, said: “Towngate Business Park is a fantastic addition to our income portfolio, adding recurring income whilst also presenting asset management opportunities to generate future value.
“The acquisition builds on our ambition to grow our exposure in the North West, where the industrial market continues to see very high levels of occupier demand and extremely limited supply which is resulting in positive rental growth forecasts.”
Tom Lamb, property manager at Towngate PLC, added: “After 21 years of ownership of the site at Widnes, it will be sad to say goodbye, however the sale offers us an exciting opportunity to explore our investment plans closer to home, within the Yorkshire region.”
Harworth was advised by Metis Real Estate Advisors and Freeths LLP. The vendor was represented by B8 Real Estate and Littler Associates.