Wednesday, March 9, 2016

News: Harworth acquires £2m Parkway office block

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Harworth Estates has acquired Sanderson House near to its flagship Waverley development in Rotherham for £2.2m.

A specialist in brownfield regeneration, Harworth Estates, which is based at Waverley, is one of the largest property and regeneration companies working in the North of England and the Midlands. Its extensive portfolio consists of a total of 27,000 acres across 200 sites. It is wholly owned by Harworth Group plc which was created through the complex restructure of what was UK Coal.

Sanderson House is home to IT Software and Solutions business, Sanderson and sits alongside Advantage House, the home of offices for Energy Alloys and The Engineering Employers' Federation (EEF). Opposite the Advanced Manufacturing Park (AMP) it is located within the emerging Advanced Manufacturing Innovation District (AMID), which is backed by Harworth in partnership with the University of Sheffield, Sheffield Business Park, Sheffield Council and Rotherham Council.

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Harworth's purchase of Sanderson House, which represents a net initial yield of 13.3%, is its second acquisition of an income-producing investment property over the past year, following the purchase of Sinfin Lane Industrial Estate in Derby for £6.95m in September 2015. Harworth's investment portfolio now totals 1 million sq ft in the Midlands, Yorkshire and north east of England.

Dave Travis, associate director of business space at Harworth Estates, said: "Sanderson House represents a solid acquisition in an area we are already heavily investing in through our Waverley development.

"We will continue to focus on improving the recurring income base of our business and we will aim to make further acquisitions where appropriate."

Harworth's property advisers on the deal were Bilfinger GVA and Knight Frank. Hlw Keeble Hawson provided legal advice.

Barry Riley, associate at Bilfinger GVA, said: "Harworth has unprecedented knowledge of the local market and Sanderson House has great potential. Harworth's excellent track record and ability to purchase the building quickly helped secure the purchase off-market."

Richard Smith, partner at hlw Keeble Hawson's Sheffield office, added: "Over the past six years hlw Keeble Hawson has been pleased to represent Harworth in a series of high-profile deals – including the purchase of Sinfin Lane Industrial Estate – as it continues to develop its powerful property portfolio. The latest purchase of Sanderson House also enhances the wider vision to attract both global and local businesses to the emerging and vibrant Advanced Manufacturing Innovation District."

For the year to the end of December, Harworth Group posted pre-tax profits of £77.6m - up from £3.5m in the previous year. The figure includes the £44.2m gain arising from the successful acquisition of the remaining 75.1% of Harworth Estates Property Group Limited.

On an underlying basis, operating profit increased to £2.1m from £0.8m in 2014. The group said that the gains in value from disposals and revaluation significantly exceeded expectations with total value gains from disposals of £40.4m, nearly double the £23.6m of the previous year. This resulted in an operating profit, before exceptional items, of £42.6m (2014: £24.4m).

The net assets at the year-end were valued at £297.7m, an increase of £47.4m on a like for like basis from the previous year. The group expects an acceleration of sales and investment in the portfolio, with further acquisitions expected from 2016 onwards.

Harworth Estates website

Images: Google Maps

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