Microsoft, one of the world’s largest organisations and most recognisable brands, has chosen to set up a new hyperscale datacentre in Leeds. This momentous move involves the purchase of 48 acres at Skelton Grange from Harworth for £106.6 million. The transaction will occur in two phases: 27 acres by late 2024 and 21 acres by mid-2026.

Harworth, a leading figure in land and property regeneration for sustainable development, will reinvest the proceeds from this sale into its Industrial and Logistics development programme. The company plans to retain more developed Grade A properties in its investment portfolio to enhance recurring earnings.

Lynda Shillaw, Chief Executive of Harworth Group, stated: “Since re-listing in 2015 Harworth has successfully completed a number of significant transactions that create value for our shareholders, but this sale at Skelton Grange is the Group’s largest to date and is yet another exemplary case study that demonstrates the successful regeneration of brownfield land.”

Harworth acquired the Skelton Grange site in 2014 for £3 million. Since then, the area has been transformed, gaining approval for over 1.1 million sq. ft. of Industrial and Logistics space. This includes previous sales and leases, such as a 19.5-acre plot sold to Enfinium for a renewable energy facility and a lease for a Battery Energy Storage System.

Upon completion, Skelton Grange is set to feature the Microsoft hyperscale datacentre, Grade A Industrial and Logistics space, and other facilities, contributing over £4 billion in investment to the local economy. Harworth will retain 16 acres for additional development.

Shillaw added: “Despite volatile market conditions, we have been successful in implementing our strategy, scaling the business and continuing to deliver market-leading returns. We remain confident that we will reach our goal of growing our business to £1 billion of EPRA NDV by 2027 and in our ability to continue to scale the business beyond this.”

This transaction marks a step forward in Harworth’s plan to enhance its investment portfolio, targeting a value of £0.9 billion by 2029, focusing on Industrial and Logistics assets.