Rotherham-based Harworth Group, one of the largest property and regeneration companies across the North of England and the Midlands, has entered into a joint venture (JV) with the Lancashire County Pension Fund (LCPF).
The specialist in brownfield regeneration, which was created through the complex restructure of what was UK Coal, has partnered with the pension fund to develop the next phase of its Logistics North site, the largest live commercial development in the North West of England.
The LCPF had assets of over £6 billion in 2016 with £688m in property. It dedicates a large portion of its investment portfolio to directly owned UK commercial properties managed by Knight Frank. It has a strategy of investing in local investment opportunities in Lancashire such as a high-standard student accommodation block in Preston, the construction of a local shopping centre, and the restoration of an iconic Victorian hotel.
Harworth has transformed a former opencast surface mine, Cutacre, to create Logistics North in Bolton which includes four million sq ft of employment space across 250 acres. Since receiving outline planning consent in December 2013, 1.5 million sq ft of employment development has been completed or is under construction.
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The joint venture, known as Multiply Logistics North Limited Partnership, is expected to deliver ten commercial units totalling approximately 564,000 sq ft, across 31.2 acres.
The transaction will unlock a development profit for Harworth as well as realising the land value. The land will be sold to, and then developed by, Multiply Logistics North. LCPF will fund 80% of the acquisition and development costs, with Harworth funding the remaining 20%. The parties will take corresponding interests in Multiply Logistics North. Harworth will also manage the development and assets for the joint venture in return for separate development management and asset management fees.
The joint venture is the seventh deal to be completed at Logistics North in the past three years, following freehold land sales to Aldi, Lidl, MBDA, Joy Global and Exeter Property Group, and Harworth's forward funding agreement with M&G Real Estate to build two new units - Logistics 225 and Logistics 175. Whistl took a ten-year lease on Logistics 225 in January 2017, following its practical completion a month earlier.
LCPF was advised by the Local Pension Partnership and Knight Frank Investment Management, whilst Harworth was jointly advised by JLL and B8 Real Estate.
Owen Michaelson, chief executive of Harworth, said: "We are delighted to have secured this joint venture with the Lancashire County Pension Fund - our first with a UK Pension fund. This is an innovative and strategic partnership which will further enhance our income portfolio and support our NAV growth, as well as providing separate development and asset management fees. We look forward to working with LCPF to maximise the potential of the site for the benefit of all and delivering more high quality industrial and logistics space in the North West."
Brown field sites can be used in a positive way. Despite some problems with handover builders and after sales... Haworth has to congratulated on turning waste land into green space
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Brown field sites can be used in a positive way.
Despite some problems with handover builders and after sales...
Haworth has to congratulated on turning waste land into green space
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