Fri, 25 Sep 2020 | COMMERCIAL PROPERTY
Property development and investment firm Harworth Group has acquired a Short-Term Operating Reserve (STOR) facility in Newport, South Wales for £495,000 plus acquisition costs. The facility, which provides additional power for the National Grids during peaks in demand, is situated on a 0.5-acre site in a commercial area to the south of Newport town centre.
Separately, Harworth Group has also completed the sale of 49-acres of non-core land in Oxcroft, Derbyshire for £444,000. This sale will provide the group with extra financial capacity to pursue more strategic land or property acquisitions in future.
The STOR facility in Newport is already let to UK Capacity Reserve Ltd (Sembcorp Energy UK Ltd), on a lease which expires in 2041, with rent equivalent to net initial yield of 8.45 per cent. Harworth is the landlord to several third-party STOR facilities across the North of England and Midlands. The Newport acquisition follows the June purchase of another UK Capacity Reserve Ltd facility in Gloucester.
Harworth Group Senior Asset Manager Matthew Smith said: "STOR assets maintain a stability of service from the grid for residents and businesses alike and have proven their value during this pandemic period.”
"We are keen to add to our portfolio of STOR assets following the acquisition of two facilities earlier this year. These assets bring societal benefit whilst also delivering a long-term recurring income streams to the business."
The group was advised by Alder King on the deal. Alder King Partner Simon Smith said: "Harworth has once again proven their ability to swiftly and efficiently purchase assets within this specialist property class. We look forward to supporting their Income Generation team as they look to further expand their portfolio."
In its latest accounts, to the year ending December 31 2019, Harworth Group reported revenue of £85.5 million, with gross profit of £27.9 million and post-tax profits of £25.5 million. According to these reports, Harworth made 11 strategic land acquisitions last year, along with 4 income acquisitions.
One of the best ways to find properties below market price is to look at recent administrations.
The company was originally founded in 2017 to provide domestic and commercial heating and electrical services in the Essex, East London and surrounding area.
LEASEHOLD
This is a retirement sale. Owner financed. Ideal for full refurbishment. Home based. Small business. Company for sale. Unique business. Attractive business. Established business. The website is the business being sold. Producing an income of £3000...
Offers a comprehensive range of building services for commercial and private clients throughout South East England. Has the capability to build high-quality houses and extensions, as well as undertake refurbishment and conversion works. Works with a...
LEASEHOLD
|
20
|
|
May
|
Administrators seek buyer for gourmet instant noodle brand | ADMINISTRATION
Bournemouth-based instant foods brand Mr Lee’s Pure Fo...
|
19
|
|
May
|
Knights continues acquisition-lead growth strategy with £11.5m deal for law firm | BUSINESS SALE
Legal services company Knights has acquired Portsmouth-headq...
|
18
|
|
May
|
Insolvencies forecast to surge 37 per cent in 2022 as inflation hits 40-year high | BUSINESS NEWS
Businesses in the UK look set to come under continuing press...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources