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Harworth reports record 2024 on path to £1bn assets

2025-04-10 07:33:30 By

The former Skelton Grange power station site.

Property firm Harworth says it is on track to accumulate £1bn in assets by the end of 2027 after what it described as a record year.

The Yorkshire-based developer and landlord says that as key land sales complete, it is confident of meeting its target of £1bn European Real Estate Association Net Disposal Value (EPRA NDV) - a key measure of assets used by real estate investment trusts. In a trading update to the London Stock Exchange, Harworth pointed to its £106.6m deal with Microsoft for land at the site of the former Skelton Grange power station near Leeds and completion of a £53.5m sale at Ansty in Warwickshire.

Bosses also pointed to a record 2,385 residential plots sold, including 13 deals with a headline sales value of £104.1m, and against a group target of 2,000 plot sales on average per year. Those deals included national and regional housebuilders and affordable housing providers.

Meanwhile there was 4.4m sqft of industrial and logistics land sold for £230.1m, giving Harworth a pipeline capable of delivering 33.6m sqft of space. Following a spate of planning approvals, the group now has 8.4m sqft of industrial and logistics land with consents.

During the year 100,000 sqft of direct development was completed and Harworth was on site at the year end with another 270,000 sqft of space which is expected to be completed within a year that is anticipated to bring £2.7m annualised rental income. The majority of the space (68%) was kept in the group's investment portfolio with the remainder built for owner occupiers.

Lynda Shillaw, chief executive of Harworth, said: “2024 has been a record year for Harworth operationally and, as we enter 2025, we remain confident in our ability to reach our £1bn EPRA NDV target by the end of 2027.

"We have an extensive platform to scale the business, owning and controlling a sizeable land pipeline capable of delivering 33.6m sqft of industrial and logistics space and 31,264 new homes, and we remain well positioned in structurally undersupplied sectors that are fundamental to the UK's economic growth. With low debt and high available liquidity, we are well placed to take advantage of opportunities whilst remaining resilient through the near-term macro-economic uncertainty.

"The consistency of Harworth's performance over time continues to highlight the agility and resilient nature of our business model, and our team's expertise in identifying and driving significant latent value from the portfolio. We continue to make solid progress in delivering our strategy and are confident in our ability to continue to drive both strong returns and long-term value from our landbank and development activities."

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National law firm to expand into North East in former Newcastle bank site

A national law firm is poised to expand into the North East after snapping up a former bank in a Newcastle suburb. The Barclays Bank unit on Gosforth High Street has lain empty ever since closing its doors to customers in March 2022 having operated as a bank for more than 125 years. The closure was among a number in the region, after the banking giant noted a fall in the number of people using its in-person services as many switched to digital banking. Now, however, property company Bradley Hall has struck a deal with a law firm to let the prominent building. The company taking on the site has yet to be named, but it has chosen the property after looking to open a North East branch, Bradley Hall said. The site had been operated as a bank by a number of companies over 128 years before its closure, originally operating as The North East Banking Company, which opened in 1894, following the development of Gosforth from Bulman Village into a wider residential area. The site then became Martin’s Bank in 1928 before being taken over by Barclays in 1969. The lease was agreed by Henry Bowers and William Reavley from Bradley Hall’s commercial agency team, based at the firm’s city Newcastle centre head office.

New £68.7m funding deal agreed for Birmingham student flats

A huge student accommodation project due for completion in Birmingham next year has been boosted by a new funding deal. LaSalle Investment Management has agreed a £68.7 million loan deal with developer and operator Vita Group for its project in Gough Street near the city's landmark Mailbox scheme. The building will house 540 beds and be run by the Cheshire-based group once completed. It will cover 105,000 sq ft across two blocks of ten and 29 storeys and contain private dining rooms, a hub for socialising and study, a gym, outdoor basketball court and terraces. Construction work started in 2023 and it is due to be ready to welcome students ahead of the 2026/27 academic year. It will add to the firm's other student project in the city at the former home of BBC Pebble Mill studios in Edgbaston. Vita Group is also behind the regeneration of the old Axis Square site, in Holliday Street, where it plans to build 'Goods Station', a residential-led, mixed-use scheme across four acres of derelict land. Chief operating officer Max Bielby said: "We're delighted to be working with trusted partner LaSalle to deliver this best-in-class student accommodation to the heart of Birmingham. "The delivery of this building is well under way and will raise the standards of what students should and can expect from their accommodation experience in the city centre. "We look forward to welcoming students from September 2026." David White, head of LaSalle real estate debt strategies, added: "This latest development loan completed by our debt investments platform maintains our strong pace of deployment, positioning our business as one of the most active real estate debt providers in Europe.

Bristol office market has highest rents outside London

Office space in Bristol is now more expensive than any other big city outside of London, a new report has revealed. Surging demand among businesses and a lack of supply drove up rents last year, the Bristol Office Agents Society found. Headline rents in the city increased through 2024 to £48 per sq ft - the highest of the big six cities analysed. A lack of "good quality" space also drove up prices on refurbished buildings which in many instances achieved rents of £40 per sq ft. Though take up of space was below the five and 10 year averages for the year, there was an increase on the level for 2023 and with strong demand towards the end of the year market sentiment going into 2025 is positive, the report said. Bristol’s city centre market saw 41 deals completed in the second half of last year with a H2 take up of 187,527 sq ft. Total annual take up in the city centre for 2024 was 440,562 sq ft. Among the biggest deals was BLOCK’s acquisition of 21,235 sq ft at the newly refurbished building The Fairfax. There were also agreements at UBS’s newly refurbished 3 Rivergate, with Aecom’s taking 15,124 sq ft on the sixth and part of the fifth floors, and DNV taking 11,261 sq ft on the fourth. Other Grade A lettings this quarter include CBREIM’s letting at Halo of 9,504 sq ft to Softcat; Mazar’s move to 7,821 sq ft at AXA / Bell Hammers Assembly C; and CBRE acquiring 7,309 sq ft of space for themselves at CEG’s EQ. Several new build schemes also completed in Bristol last year, including CEG’s EQ, Trammell Crow and Tristan Capitals’ Welcome Building, and AXA / Bell Hammer’s Assembly Buildings B & C, all of which secured pre-lets. Beyond these there are no other new developments under construction. The only major works ongoing are comprehensive refurbishment schemes including APAM’s One Friary, CEG’s Crescent and Abrdn’s Queens Quay. Andy Smith, office agency partner at Knight Frank, said: “An election year always has a negative impact on levels of take up as businesses often put moves on hold due to the uncertainty surrounding a new government and 2024 was no different. "However, even in this challenging market there were a number of significant deals, and occupiers continued flight to quality saw rents rise." He added: "As we start 2025 there has been a marked uptick in new enquiries both in and out of town which reflects an underlying improvement in occupier sentiment and a slightly less uncertain political and economic outlook for the year.” Meanwhile, the Bristol out-of-town market saw 13 deals cross the line through the second half of the year to give a H2 take up of 54,773 sq ft. The largest of these was the long leasehold of 13,075sq ft at 23 Clothier Road to Outcomes First Group. The figure was below the five and 10 year averages but the outlook for 2025 is "more positive", the Bristol Office Agents Society said. Chair of the South West OAS, and Lambert Smith Hampton’s office agency director Roxine Foster, added: “2024 proved to be a year of mixed fortunes, however the outlook for 2025 is positive and with pressure on supply becoming more and more evident it will be interesting to see which the next schemes are to start on site."

Strong tenant interest in £12m low carbon Carmarthenshire office and industrial scheme

A new sustainable £12m office and industrial development in Carmarthenshire is already half let with strong tenant interest in remaining space. The Parc Gelli Werdd development at Cross Hands provides 26 office and workshop units, which collectively extend to 32,500 sq ft. The project was finance with £4.5m from the Welsh Government, £1.25m from Carmarthenshire County, as well as backing from the Active Building Centre and the European Regional Development Fund. Thirteen units are already occupied, with a further three under offer. The scheme is being managed and marketed by the council with quoting rents for offices at £11 per sq ft, hybrid units £8.50 sq ft and light industrial space £7. The low carbon development, part of the Welsh Government’s property delivery plan, comprises high performance insulation and roof mounted solar panels that will deliver reduced building running costs and benefit the environment. Designed to achieve net zero carbon in-operation target, it also includes an building management system that incorporates a bespoke metering and monitoring platform to enable billing and detailed performance monitoring. This will allow tenants to manage electricity consumption to achieve cost efficiencies. Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:“We are determined to stimulate green economic growth, creating sustainable employment opportunities and supporting Wales’ transition to a low-carbon economy. “I’ve spoken to so many businesses both here in Carmarthenshire and elsewhere who have been clear that creating localised, well connected, high-quality business spaces with sustainability at their core, is a priority for expansion and job creation. “The Parc Gelli Werdd development has been built to exceptional environmental standards and will reduce operational costs for occupying businesses whilst minimising environmental impact, in accordance with the net zero strategic plan.” Among the first companies to occupy units at the site is Conquer Teamwear. Company owner Chris Jones said: “Moving into units 3 & 4 at Parc Gelli Werdd has been a great boost for our business and will help with the continued growth of Conquer Teamwear. The units are of a really high specification and the location is perfect for our staff and customers, being just a few minutes off the dual carriageway and Cross Hands roundabout.” Leader of Carmarthenshire County Council, Darren Price, said: "The Parc Gelli Werdd development is an important example of how the local authority and Welsh Government can collaborate to deliver high quality business space with sustainability at its core. "The council is committed to tackling the climate emergency, working towards our net zero carbon goal, and business space like this prove that this ambition is possible. “It is encouraging to see a number of Carmarthenshire businesses already utilising this space, allowing them to grow their business create local jobs and pursue their own sustainability goals moving forward.”

Manchester 'could run out of office space by 2027' - what it could mean

Andy Burnham, the Mayor of Greater Manchester, revealed a 'sobering' report shortly before Christmas, suggesting that if current trends continue, the city could run out of office space by 2027. He said: "There'll be investors wanting to come here but there won't be available space because if we're moving at the pace we're moving at, we'll have that problem. So that was quite a sobering read." The exact details of the report remain undisclosed, but insiders confirmed that it implies a potential shortage of new office space in Manchester city centre in the coming years. Council leader Bev Craig attributed the high demand for offices to Manchester's appeal to investors, stating: "Manchester is a place of high investor confidence", and "we attract major international businesses to the city, alongside a very healthy start-up and SME community of businesses". She added: "After economic challenges since Covid, building across the country slowed. Thankfully in Manchester we have bucked the national trend. "We know without building more, we will see a diminishing supply of readily available Grade A office space, so we will continue to work with partners and the development community to bring forward future office investment opportunities in the city to ensure we can meet demand to support Manchester's ongoing growth ambition to bring more jobs to our city in 2025." Colin Thomasson, executive director of commercial real estate giants CBRE, has warned that a lack of new office spaces could pose 'a barrier for how we grow the city', reports the Manchester Evening News. CBRE serves as the investment advisor for the £840 million Greater Manchester Property Venture Fund (GMPVF), an offshoot of the Greater Manchester Pension Fund, which invests millions into new developments across the north west. Mr Thomason said: "Where I think it stunts growth is that Manchester's grown as a city in the last 20 years because when [huge firms like] Google arrived... and said 'we're thinking of creating an office in Manchester', you've had two or three brand new buildings that you can immediately take them to and say, 'this could be your office'. "They go 'wow, it's amazing'. So you've energised their ability to think this is a great home for them." He continued by saying that these new buildings not only impress potential investors but also enable major firms to establish connections with local universities and the public sector. However, without these new buildings, Thomason believes it changes the narrative when trying to attract businesses to the city. He added that this could potentially create challenges in presenting the city's story to potential occupiers and those looking to expand their operations. Bruntwood SciTech, a leading developer, is currently constructing top-spec offices including the Citylabs medical technology hub and the Greenheys Building, a £20m 'sample' biobank set to open next year for drug research. Among its major projects is the £87m, 267,000 sq ft No 3 Circle Square, the latest addition to the former BBC New Broadcasting House Oxford Road site. As Josh Whiteley revealed during a tour for the Manchester Evening News., Circle Square already houses Uber, Octopus Energy, and Bosch, with AutoTrader set to relocate from First Street soon. The development also includes student accommodation, which, according to Whiteley, 'underpins the land value to allow commercial development to come forward'. Without these residential receipts, he said, securing lending for construction would be challenging. In addition to this, Circle Square features Amber's nightclub, Federal cafe, and Asda Express among its 26 leisure units. "We want to generate a place that a lot of people can enjoy," Mr Whiteley explained, adding that it's not intended to be a new Northern Quarter or Spinningfields. Despite the scale of Circle Square, it's dwarfed by Bruntwood SciTech's largest project - the 26-acre Sister project, previously known as Innovation District Manchester. "The basic idea is to connect Piccadilly with Oxford Road," explained Mr Whiteley. The plan involves replacing a multi-storey car park with three new student tower blocks and renovating several university buildings into offices, including the grade-II listed Sackville Building. This means students will no longer study there, and it might close to the public. While plans to maintain some public access are being considered, Josh acknowledged that "maintaining security for technological, research, and development companies while keeping areas open is a challenge". Another building closing as a university facility is the Renold Building, the world’s first purpose-built lecture hall. It has recently reopened for businesses, and the idea is to convert it into a convention centre with offices, as demand for conferences in Manchester keeps growing. Another university facility set to close is the Renold Building, the world's first purpose-built lecture hall, which is slated to be converted into a convention centre with offices to meet Manchester's growing demand for conference spaces. However, new builds aren't the only solution to Manchester's office space issues. Renovations are also taking place at the Pall Mall and Pinnacle buildings on King Street, which are set to reopen in August and be connected at the ground floor for the first time, according to Richard Roper. "We want this to be best-in-class on how to retrofit a building sustainably," he said. "The building is listed, so even windows have to be replaced to the millimetre. That means it will look the same but be completely different inside." The MEN's tour showcased the various strategies developers employ to meet office demand, with Richard asserting that 'you have to invest' as 'the quality of space is getting so good'. Yet, the crucial question remains whether the property sector can maintain this pace or if it will hinder Manchester's progress.

New self-storage facility launches

A new self-storage centre powered by the latest technology has opened in the Black Country. Wolverhampton-based Westbeech Group has launched its first Nest Storage centre on Old Hall Industrial Estate, in Revival Street, Bloxwich. Nest Storage is open 24/7 every day of the year with access granted via a mobile app. It is housed in what used to be a bowling alley on an industrial estate that was also once home to a snooker hall and gym. Westbeech Group owns a number of industrial estates across the West Midlands and is in negotiations over a second site in Wolverhampton. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Managing director Ian Houghton said they had researched the self-storage market for the past 18 months before electing to partner with Engage, a Birmingham-based business which runs and manages 22 similar units for different UK brands. "Self storage is a well developed industry but most of the big players in the market constructed their dedicated units in the past five to ten years," he said. "Since then, technology has changed dramatically what we can do and, particularly in the last 18 months, has taken giant strides forward. "We believe we are launching with a cutting-edge product that is designed for today's tech-savvy customers. "Our first unit has been custom designed with new technology inbuilt, whereas retrofitting can cost between £50,000 and £100,000 per site.

Big box market could get ‘competitive’ as industrial market returns to growth while development pipeline is limited

The North West’s industrial and logistics market has returned to growth – and a new report suggests a limited big box development pipeline means there will be “competitive tensions” and rising rents. The North West Logic report from Knight Frank showed the market was positive again in 2024 after two years of decline. Occupier take-up reached 4.8million sq ft, up 7.5% on 2023 and surpassing the five-year pre-pandemic average. The study showed manufacturing had a strong year, with a 71% year-on-year increase in take-up from the sector meaning manufacturing made up 39% of total take-up. Meanwhile, retail and distribution sectors accounted for 26% and 28% of take-up respectively. Prime rents hit £11.50 per sq ft, with prime annual rental growth of 15%. Knight Frank is expecting more growth this year, with prime rents forecast to rise by 4.5% across the North West and 5.7% in Manchester. Key deals included the letting of Oldham 369, a 369,251 speculative new build, to food firm Inspired Global Cuisine. Sam Royle, partner, Manchester logistics & industrial for Knight Frank, said: “ The big box development pipeline is limited for the region with only seven units over 100,000sq ft currently under construction and scheduled for completion in the next 12 months. Quoting rents on these new builds are averaging £9.00-£10.00 per sq ft. “With a slow down in the big box development and a lack of Grade A units in the market we anticipate further competitive tensions from occupiers trying to secure best-in-class units. This is likely to lead to upward pressure on quoting rents as the year progresses.” Knight Frank capital markets partner Matt Stretton said investment activity also turned a corner towards the end of the year . He said: “Investment volumes in Q4 were held up by the off-market sale of a cluster of five logistics units and an office next to Manchester airport all of which were let to The Hut Group. “Prime industrial yields in Manchester sharpened by 25 bps to 5.25%during Q4 following six consecutive quarters in which Manchester’s prime yields had bottomed out at 5.5% “The adjustment signals the beginning of a new prime pricing cycle and a transition towards what is anticipated to be a more active market in 2025. At 5.25% Manchester’s prime yields maintain a 25-bps discount compared with prime London & South East industrial. “Most of the activity has been in the multi-let sector, as opposed to logistics where there are a number of estates that have either traded or are under offer. This demonstrates the depth of buyers, particularly for prime locations. “Premier Park at Trafford Park saw competition from most of the traditional UK funds, which drove pricing from a quote of £37.5m to the price paid by M&G reflecting £46.9m. The 20-unit 197,000 sq ft multi-let industrial complex is fully let with 65% of the income subject to a lease event within the next 24 months.”

Revamp for Jewellery Quarter office block

An office block in Birmingham has undergone a renovation project. The facelift work at the Jewellery Business Centre, in the historic Jewellery Quarter district, includes new breakout space for collaboration and relaxation and a refreshed reception area. There is also a new dedicated postal room, redecorated corridors, new signage and other work to the building's décor. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Landlord Northern Trust Company carried out the project in Spencer Street in collaboration with Rota Contracting and Poppy Signs. Business centre manager Lisa Whitcombe said: "Northern Trust is dedicated to creating high-quality workspaces that meet the evolving needs of our occupiers. "These improvements reflect our ongoing investment in the Jewellery Business Centre and underline our commitment to supporting businesses in Birmingham's Jewellery Quarter." The building has flexible space able to accommodate single occupiers up to small businesses.

Property group snaps up Northumberland industrial estate in £5m deal

Property group Northern Trust Company Ltd has snapped up a Northumberland industrial estate in a multimillion-pound deal. Northern Trust Company, an investment group focusing on property investment, development and strategic land promotion, currently has a portfolio of around 9m sqft of industrial space, trade counters and office parks, as well as more than 5,000 acres of land throughout the UK, supporting over 25,000 jobs. Now the business has bought the South Nelson Industrial Estate in Cramlington, which has 46,683 sqft of workspace across 33 units, set next to Northern Trust’s existing Nelson Park Industrial Estate. The £5m acquisition takes Northern Trust’s total ownership in Cramlington to around 300,000 sqft in 100 industrial units occupied by a range of local and regional tenants, while also further strengthening its presence in the North East industrial market. The South Nelson Industrial Estate is home to a mix of well-established businesses, including Mosa Welding Products, Rod & Tackle fishing shop, Merc Solutions, A1 Forklift Truck Training and Northumbrian Bearings & Transmissions. Tom Parkinson, director at Northern Trust, said: “We are pleased to have completed the acquisition of South Nelson Industrial Estate, which is a valuable addition to our portfolio. This strategic acquisition not only strengthens our presence in Cramlington but also enhances our ability to meet the growing demand for quality industrial space in the area. “The location’s close proximity to Nelson Park Industrial Estate provides an excellent opportunity for us to further support local businesses with a wider range of flexible business space solutions.” Barry Nelson, regional property director in the North East, added: “South Nelson Industrial Estate is a well-established industrial estate with excellent connectivity, making it an ideal addition to our portfolio. With the diversity in unit sizes, we can cater to a wide range of businesses looking for flexible space to meet their operational needs. We look forward to managing and developing relationships with the existing occupiers on the estate.” Chris Donabie, partner at Naylors Gavin Black, acted for Northern Trust on the acquisition. He said: “We identified that the industrial asset had potential to compliment Northern Trust’s nearby Nelson Park Industrial Estate and managed to secure it in an off-market deal.” The trust’s portfolio in the North East has 75 different schemes, including the Airport Industrial Estate in Newcastle, Amble Industrial Estate, Bede Trade Park in Jarrow, the office scheme Silverlink Business Park and Telford Court office space in Morpeth.

Plans revealed for 33-storey co-living scheme in the centre of Cardiff

Plans for a 33-storey co-living scheme in the centre of Cardiff can be revealed. Bangor-based and Alternative Investment Market listed developer Watkin Jones will next week launch a pre-planning public consultation exercise for its 400 build-to-rent bedroom scheme on a brownfield site at Custom House Street. Co-living is a type of communal housing in which residents have private bedrooms and bathrooms, but share other facilities required to meet everyday needs, such as communal kitchens and living spaces. Other shared facilities in the scheme, designed by Cardiff-based Rio Architects, include a gym, gardens and co-working space. The co-living concept has grown in popularity in other core UK cities, including London and Bristol. The statutory consultation will run to the end of March with a planning application expected to be submitted to Cardiff Council in the spring. Watkin Jones, which specialises in student accommodation and build-to-rent developments, is working with planning consultants Lichfields on the project. Two virtual webinars will be staged this month to gauge the views of, and obtain suggestions from, the local community and stakeholders on the plans ahead of submission. Iain Smith, planning director at Watkin Jones, said: "The webinars will provide us with the opportunity to engage with the community, understand their perspectives and ideas. This feedback will help shape our development plans, ensuring that the final submission aligns with the needs of the surrounding community and future residents. As an experienced developer and manager of co-living, the sessions will also provide a platform for the community to ask questions about this emerging form of housing." Subject to planning approval, work on the scheme would start before the end of the year and take around 30 months to complete. As with its other property schemes, Watkins Jones would be expected to sell the asset to an institutional investor. Last year work started transforming the former Knox Court office building on Newport Road in Cardiff for another co-living scheme. It came after developer Urban Centric struck a £23.8m debt deal with Shawbrook for the project at the 60,000 sq ft building, alongside securing a £7.6m equity injection from Housing Growth Partnership, which is part of Lloyds Banking Group.