Sustainable developer and land regenerator Harworth has bought the Catalyst urban logistics estate in Rotherham, UK, for £43.7 million.
The five-unit, 285,000 square foot Grade-A logistics estate is Harworth’s largest industrial asset purchase. It extends its flagship industrial development, the Advanced Manufacturing Park (AMP) to have extensive frontage on both sides of the Sheffield Parkway.
Harworth, Chief Executive, Lynda Shillaw, says, “This acquisition, the largest of an Industrial & Logistics investment asset in Harworth’s history, aligns with our strategy to grow our high-quality Investment Portfolio. It also continues our track record of strategic site assembly, providing an opportunity to extend the AMP, further establishing it as one of the leading manufacturing and distribution centres in the region.
“Increased direct development and the retention of Grade A Industrial & Logistics assets across our major sites, supplemented by select, income-producing acquisitions, is core to our strategy, whilst we will also look to recycle properties where value has been maximised through completed asset management initiatives.”
The £43.7 million purchase price reflects a net initial yield of 5.4%. The scheme is 90% let, with a WAULT of 6.6 years to break and 10.1 years to expiry.
Harworth is confident of securing a letting for the final 28,000 square feet. When fully let, the scheme will generate £2.5 million of rent a year from rates of more than £10 per square foot.
The acquisition follows Harworth’s strategy to grow its Investment Portfolio to £0.9 billion by the end of 2029 and also transition its core portfolio to 100% Grade A by 2027.
Earlier in October 2024, Harworth completed a further 73,000 square feet of Industrial & Logistics space at the AMP. This brings the group’s Investment Portfolio to 2.8 million square feet, of which 45% is Grade A. At the end of June 2024, it was 37%.
