Harworth, a regenerator of land and property for sustainable development and investment, has completed the acquisition of Catalyst, a 285,000 sq ft, Grade A, urban logistics estate in Rotherham, South Yorkshire. The £43.7m purchase price reflects a net initial yield of 5.4%.
The asset, completed in 2023, is strategically located adjacent to the Group’s flagship industrial development and major UK manufacturing hub, the Advanced Manufacturing Park (AMP).
Comprising of five units, the scheme 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.
Harworth is confident of securing a letting for the final 28,000 sq ft, and when fully let the scheme will generate £2.5m of annualised rent. The acquisition provides an opportunity to implement tailored asset management initiatives and deliver additional value across the wider AMP, where Harworth continues to see strong demand from occupiers, and rents have recently exceeded £10 per sq ft.
Lynda Shillaw, Chief Executive, Harworth, said: “This acquisition, the largest of an Industrial & 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 & 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.”
