Harworth, a regenerator of land and property for sustainable development and investment, has exchanged contracts for the conditional sale of 48 acres of land at its Skelton Grange site in Leeds to MSFT MCIO Limited (Microsoft) for a total consideration of £106.6m.
The plot comprises two adjoining land parcels.
Plot 1, which comprises 27 acres, will be sold on an unserviced basis for gross consideration of approximately £52.9 million. Completion of the sale is targeted for H2 2024. Alongside completion of the sale of Plot 1, the Group will be reimbursed approximately £0.5 million for the costs it has incurred in securing additional power capacity for the site.
Plot 2, which comprises 21 acres, will be sold on a serviced basis for gross consideration of approximately £53.2 million. Completion of the sale is targeted for H1 2026.
The former Skelton Grange power station site was purchased by Harworth in December 2014 for £3 million.
Since acquisition, Harworth has secured approval in November 2023 for 800,000 sq ft of Industrial & Logistics space, and most recently in May 2024, a reserved matters approval for a further 320,000 sq ft of Industrial & Logistics space.
Previous transactions at the site include a 19.5-acre land sale to Enfinium in 2020, on which it is developing a 49MW energy-from-waste (EfW) renewable electricity generation facility for its own operation, and the grant of a lease in 2021 to facilitate the development of a 100MW Battery Energy Storage System (BESS) facility on a 5.7-acre demise.
Harworth acquired a further 21 acres of adjoining land in 2023.
Upon completion of the transaction, Harworth will have invested £36.7 million in the site and generated £135.7 million of sales. The Group will retain 16 acres on which to promote 250,000 sq ft of employment space. This is in addition to the 77 acres owned by way of joint venture with The Aire Valley Land LLP at a neighbouring development, Gateway 45.
Once the development is complete, Skelton Grange is expected to provide 250,000 sq ft of Grade A Industrial & Logistics space, a hyperscale datacentre, a BESS facility, an EfW facility, and 28 acres of land returned to a natural habitat alongside improved green travel infrastructure, which Harworth estimates will represent in excess of £4 billion of inward investment providing a substantial boost to the local economy.
Lynda Shillaw, Chief Executive, Harworth Group, said: “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.
“It highlights Harworth’s capabilities in identifying and acquiring complex sites, creating planning-friendly masterplans that maximise site potential, and deploying timely and effective investments into remediation and infrastructure. This transaction further builds our expertise to include datacentres and evidences the growing spectrum of industries that continue to be attracted to the schemes that Harworth brings to the serviced land market.”
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