Harworth Group PLC Acquisition of two key Midlands sites (3624P)

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RNS Number : 3624P

Harworth Group PLC

31 August 2017

31 August 2017

Harworth acquires two key Midlands sites to grow strategic land bank

Harworth Group plc ("Harworth" or the "Company"), the brownfield land and property developer & investor, is pleased to announce that it has purchased two strategic land sites in the Midlands to accelerate the expansion of its strategic land bank. Both sites have been purchased using part of the GBP27.1m raised from the Company's equity placing in March 2017 and are projected to deliver returns above Harworth's double-digit target rate of return. The sites also sit adjacent to existing Harworth landholdings, thus generating marriage value (additional value) when combined.

Coalville, Leicestershire

Harworth has purchased a 145-acre site in Coalville, Leicestershire that neighbours its existing Coalville major development site for GBP11.8m plus acquisition costs. The newly acquired site already benefits from planning consent for 914 residential plots and the transaction brings marriage value when combined with Harworth's existing planning consent. The deal brings the total number of consented plots at Coalville under Harworth control to 2,016 plots, providing a 15-year development pipeline.

Chatterley Valley, Staffordshire

Harworth has also exercised its option to purchase an 88-acre site at Chatterley Valley, Staffordshire close to the A500 that neighbours our existing 24-acre freehold site for GBP2.6m plus acquisition costs. The combined 112-acre site benefits from an extant planning consent for 1.2m sq. ft of commercial development, generating marriage value and providing a 10-year development pipeline. It also benefits from Government Enterprise Zone status that provides incentives to potential occupiers.

These deals bring the total number of consented residential plots currently under Harworth's ownership to 10,085, alongside 11.2m sq. ft of consented commercial development space.

Commenting on these deals, Owen Michaelson, Chief Executive Officer, said:

"Growing and expanding our strategic landbank is fundamental to delivering continued value to our shareholders and both purchases provide clear long-term value adding opportunities.

The outlook in the Midlands market remains healthy, driven by comparatively low prices, a lack of housing land supply and the scarcity of good quality new commercial units.

Good progress has also been made in securing other land and property targets identified in March's equity placing. We therefore expect that all of the funds raised in March will be committed by the year end."

-ENDS-

Enquiries:

 
Harworth Group plc     T: 0114 349 3160 / 07825 
                        860215 
Iain Thomson           E: [e-mail] 
 
Cardew Group           T: 020 7930 0777 
Shan Shan Willenbrock 
 

NOTES TO EDITORS

About Harworth Group

Listed on the main market of the London Stock Exchange, Harworth Group plc (LSE: HWG) ("Harworth") is a leading brownfield land and property developer & investor which owns and manages a portfolio of approximately 22,000 acres of land over 140 sites located throughout the Midlands and North of England. The Company specialises in the regeneration of former coalfield sites and other brownfield land into employment areas, new residential developments and low carbon energy projects.

Harworth will be announcing its Interim Results for the six months ended 30 June 2017 on Wednesday 6 September 2017.

http://www.harworthgroup.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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August 31, 2017 02:00 ET (06:00 GMT)