Harworth Group plc said on Monday that it has acquired off-market Saturn Park, an industrial property in Knowsley, Merseyside, for £26 million plus acquisition costs.
Situated on a 35.2 acre site, Saturn Park comprises c.416,000 sq. ft of modern warehouse space across three units with ancillary offices, plus c.13.1 acres of open storage land, which together generate a passing rent of £2.14 million per annum with a WAULT to expiry of 5.25 years.
Harworth said this reflects a net initial yield of c.7.7% and a reversionary yield of c.9.0%.
Located adjacent to Junction 4 of the M57, Saturn Park is conveniently positioned for access to The Port of Liverpool and the M58, M62 and M6 motorways. The site’s warehouse space is let to two tenants including Singleton Trading, a specialist importer and distributor of toys and goods to the North West, which occupies two units totalling c. 317,600 sq. ft. The third c.77,000 sq. ft unit is let to Relonchem, an independent pharmaceutical company. Four tenants occupy the majority of the open storage land across five leases, generating an annual passing rent of c. £628,000, whilst c. 10,500 sq. ft of the 22,000 sq. ft of office space is let to the NHS.
“This off-market transaction is an excellent use of our significant financial headroom to further improve the resilience and depth of our investment portfolio, whilst also providing clear asset management opportunities to generate future value gains. The acquisition also underlines our ongoing commitment to invest in our core regions and given the obvious synergies to the Port of Liverpool, it directly supports Government efforts to rebalance the UK economy,” said Lynda Shillaw, Chief Executive of Harworth.