Harworth Group has sold two business parks in the North West for a combined consideration of £35.8m, reflecting a blended net initial yield of 4.7%.
In Widness, Harworth has sold Towngate Business Park to an undisclosed buyer for £11.2m and in Walton Summit, Preston, the company has sold Four Oaks Business Park comprising a multi-let unit and a single unit for £12.3m each.
The 330,000 sq ft single unit, which sits on a 14-acre plot and includes 20,000 sq ft of office space, was bought by the current occupier Preston-based logistics specialists FDC Holdings (pictured).
The company says it will invest £2m on capital equipment and a range of building improvements and had retained Preston-based architects JYM Partnership to advise on the refurbishment plans for the building.
Peter Allen, chairman of FDC Holdings, said: “This is an important step for our business. Owning the building gives us the control we need to invest in more client-facing infrastructure and resources. We make a commitment to our clients about service levels and having control of more of the moving parts that allow us to keep that promise is vitally important.”
Savills’ Manchester office handled the sale for the vendor. Legals were handled by the Preston office of Harrison Drury for FDC Holdings, with Freeths in Liverpool advising Harworth.
Nicola Beneduce, partner in the commercial property team at Harrison Drury, said: “It’s great to see a longstanding client going from strength to strength. We’re thrilled to have assisted Peter in the latest stage of FDC’s growth journey by advising him on the purchase of the premises, which puts the business firmly in control of its future at the site.”
Andrea Morley, director of asset management at Harworth Group, added: “We are delighted to have completed this sale to FDC Holdings, the culmination of a successful working relationship between FDC and Harworth over many years. FDC’s planned investments in this well-located facility demonstrate its growth ambitions, commitment to customer service, and support for the local economy in the north west.”
Harworth said the prices paid for the assets were in line with December 2022 valuations.
Lynda Shillaw, chief executive of Harworth Group, said: “Last year Harworth directly developed a record amount of sustainable Grade A industrial and logistics space, as we progressed our growth strategy to become a £1bn business by 2027.
“As we retain more of these high-specification units, we have sought to recycle capital from the disposal of older assets where we have maximised value creation through asset management and development works, and our sales at Widnes and Preston demonstrate this pillar of our strategy in action. These transactions also demonstrate continued demand for high-quality industrial and logistics assets from investors.”
