Harworth has made a decisive move by acquiring the Catalyst logistics scheme for £43.7 million.
This strategic acquisition, positioned next to the Advanced Manufacturing Park, reflects Harworth’s commitment to expanding its investment portfolio.
Yorkshire development company Harworth has expanded its investment portfolio significantly with the acquisition of the Catalyst logistics scheme for £43.7 million. Located at Sheffield Business Park, the site comprises a 285,000 square-foot estate. The acquisition reflects a net initial yield of 5.4%, highlighting its value potential. Catalyst is situated next to Harworth’s flagship Advanced Manufacturing Park (AMP), boosting its logistical capabilities.
Constructed just last year, Catalyst boasts a 90% occupancy rate, with a mixture of tenants already in place. The site features five purpose-built units, offering extensive space for diverse logistical operations. Harworth anticipates securing tenancy for the remaining 28,000 square feet, which, once achieved, is expected to produce an annual rental income of £2.5 million. This indicates robust demand and promising financial returns.
Catalyst’s strategic positioning adjacent to the AMP is of significant importance, providing seamless connectivity to a key UK manufacturing hub. It benefits from excellent transport links and access to a substantial workforce, enhancing its appeal. Harworth leverages this acquisition to extend its reach in the region, fortifying its presence in the industrial and logistics sector. The unified development approach brings potential expansion opportunities.
The acquisition aligns with Harworth’s strategic blueprint to expand its investment portfolio to £0.9 billion by the end of 2029. Furthermore, the company aims to transition its portfolio to 100% Grade A by 2027. Recent developments also include the completion of an additional 73,000 square feet of industrial space at the AMP, increasing Harworth’s total investment holdings to 2.8 million square feet, 45% of which is Grade A.
Lynda Shillaw, Harworth’s chief executive, emphasised that this acquisition is the largest industrial and logistics investment asset in the group’s history. It supports their ambition to grow a high-quality portfolio and further strengthens their site assembly strategy. She expressed confidence in maximising asset value through strategic development and acquisition, ensuring Harworth remains a leader in the regional manufacturing and distribution landscape.
Harworth’s plan includes implementing tailored asset management initiatives to derive additional value from the wider AMP area. The initiatives focus on enhancing property value and supporting tenant demands amidst rising rental rates that have recently exceeded £10 per square foot. Such measures highlight the proactive approach Harworth takes in managing and optimising its property assets effectively.
This acquisition not only underscores Harworth’s commitment to industrial growth but also reinforces its strategic market positioning. As a prominent player in the industrial and logistics arena, Harworth continues to demonstrate resilience and adaptability. Its strategic decisions contribute to regional economic development, showcasing its innovative approach to property investment.
In acquiring Catalyst, Harworth strategically positions itself for growth.
The acquisition aligns with its long-term objectives, enhancing its presence in the industrial sector.
