Harworth Group plc has sold the 283-acre Bilsthorpe Business Park in Nottinghamshire for a total consideration of £4.6 million in two separate transactions.
The first sale comprised the sale of a 10 acre site, including a Highways Depot let to Nottingham City Council on a long lease, to Waypoint for £2.05m, reflecting a net initial yield of c. 3.0%.
The remaining mixed-use, 273 acre site was sold to Insite Group for £2.55m, reflecting a c. 5.5% net initial yield. The site comprises a c. 22,000 sq. ft multi-let industrial estate; a Coal Mine Methane energy generation plant; and 250 acres predominantly low-grade agricultural land.
The disposal of business park in Nottinghamshire follows Harworth’s recent acquisition of Saturn Business Park in Knowsley for £26.0 million, reflecting a net initial yield of c. 7.7% and a reversionary yield of c. 9.0%.
“With Bilsthorpe Business Park having little further development potential, now is the right time to dispose of our historic interest in this site, driving value from our portfolio, freeing capital up to invest in higher yielding opportunities in our core regions, and increasing the resilience of our investment portfolio,” said Lynda Shillaw, Chief Executive of Harworth.
“Swiftly completing these sales has been a key management priority. We will now focus on acquiring higher yielding property with the opportunities for direct development and asset management to further grow the Company’s income portfolio,” added Richard Bousfield, Head of Income Generation at Harworth.