Image credit: Harworth Group plc

Harworth Group PLC, a leading regenerator of land and property for sustainable development, has announced a strong performance for the first half of 2024. The Group, which operates across the North of England and the Midlands, has been driven by strategic land sales and planning progress. The highlight of this period is the conditional sale of 48 acres of serviced land at Skelton Grange to Microsoft for £107 million, representing an internal rate of return (IRR) of over 40%.

Chief Executive Lynda Shillaw stated, “This has been another strong first half for planning approvals and land sales. The highlight is our £107 million serviced land sale to Microsoft at a significant premium to book value, marking our largest transaction to date.”

Key Achievements in the First Half of 2024

Land Sales: Harworth completed or exchanged contracts on 86% of its budgeted sales for the year, maintaining strong demand for serviced land. This success will undoubtedly be mentioned at property networking events in Sheffield and business investment events in Leeds.

– Planning Approvals: The Group secured planning permission for 1.8 million sq. ft. and 500 plots in the first half, with an additional 1.5 million sq. ft. and 150 plots approved post-period end. New allocations in local plans include 5.7 million sq. ft. and 2,875 plots.

– Industrial & Logistics Development: Harworth’s pipeline now has the potential to deliver 38.8 million sq. ft. of Industrial & Logistics space. Enabling works are underway for 2.2 million sq. ft. of direct development on major sites, including Skelton Grange.

– Residential Land Sales: The Group completed sales of 357 plots of serviced land at Ironbridge, Simpson Park, and Waverley for £23.9 million. Post-period sales included 132 plots at Stopes Road for £8.5 million.

Strategic Focus and Financial Health

Harworth is on track to reach an EPRA NDV of £1 billion by 2027, supported by a well-positioned balance sheet with a pro-forma loan-to-value (LTV) ratio of 10.8% and available liquidity of £154.2 million. The Group’s strategy includes increasing its focus on Industrial & Logistics development, targeting £0.9 billion in its Investment Portfolio by 2029.

Shillaw added, “Our growth will be driven by our extensive Industrial & Logistics pipeline, which totals 38.8 million sq. ft. We see strong demand for high-quality serviced land and employment spaces, with sales providing a stable funding channel for our development programme.”

Commitment to Sustainability

Harworth remains committed to sustainable development, having published its 2023 Net Zero Carbon Progress report and Communities Framework. The Group recently planted over 108,000 trees in collaboration with the Forestry Commission at Chevington North in Northumberland and opened a new 350-acre Country Park in Thoresby Vale.

Future Outlook

The Group expects EPRA NDV as of 30 June 2024 to be moderately higher than the year-end figure, reflecting positive valuation movements across its portfolios. With strategic planning and continued demand for its services, Harworth is poised for sustained growth.

For more details, Harworth will announce its Half Year results on 12 September 2024.

This success story will undoubtedly be mentioned at upcoming property construction networking events in Manchester and construction business events throughout the UK.