Harworth has acquired the 285,000 sq ft Catalyst urban logistics estate in Rotherham, South Yorkshire, for £43.7m, in a deal reflecting a net initial yield of 5.4%.
The scheme, which is located next to Harworth’s flagship Advanced Manufacturing Park (AMP), comprises five units and is currently 90% let to a diverse range of occupiers, with a WAULT of 6.6 years to break and 10.1 years to expiry. When fully let the scheme will generate annual rent of £2.5m
Harworth said it was confident of securing a letting for the final 28,000 sq ft unit and added the acquisition provides an opportunity to implement tailored asset management initiatives and deliver additional value across the wider AMP.
Lynda Shillaw, chief executive of Harworth, said: “This acquisition, the largest of an industrial and logistics investment asset in Harworth’s history, aligns with our strategy to grow our high-quality investment portfolio. It also continues our track record of strategic site assembly, providing an opportunity to extend the AMP, further establishing it as one of the leading manufacturing and distribution centres in the region.
“Increased direct development and the retention of Grade A industrial and logistics assets across our major sites, supplemented by select, income producing acquisitions, is core to our strategy, whilst we will also look to recycle properties where value has been maximised through completed asset management initiatives.”
