Harworth Group plc has bought Towngate Business Park, a multi-let industrial estate in Widnes, Cheshire, from Towngate Plc for £12.7 million.
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%,” said Harworth in a statement.
Harworth intends to invest in the industrial estate, leveraging its asset management expertise to capture rental reversion and explore infill development opportunities over the medium term.
Located on Everite Road, Widnes, Towngate Business Park provides easy access to the M62 via the M57 (1 mile) and south to the M56 (1 mile), leading to the M6. Liverpool John Lennon Airport, the Port of Liverpool and Manchester International Airport are all situated within a 24 mile radius.
“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,” said Richard Bousfield, Head of Income at Harworth Group.
“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,” said Tom Lamb, Property Manager at Towngate PLC.