Harworth Group, the brownfield regeneration and property investment company, said it acquired Four Oaks Business Park in Preston, Lancashire for £13.5 million as part of its strategy to strengthen its income portfolio and further expand its presence in the North West of England.

Harworth said its freehold purchase represents a net initial yield of 8.74%.

Four Oaks is located five miles to the south east of Preston and sits at the intersection of Junction 9 of the M61, Junctions 29 and 30 of the M6 and Junction 2 of the M65.

The site is close to Harworth’s flagship Logistics North development in Bolton and its recently acquired Moorland Gate Business Park in Chorley.

Harworth recently completed the sale of 43.71 acres at Logistics North to “a leading company” believed to be supermarket chain Lidl for £22.5 million.

The Four Oaks site extends across 19.4 acres with 428,800 sq. ft of built logistics warehousing space.

Harworth said the latest deal offers further asset management and development opportunities, including 0.5 acres of potential development land for roadside uses that the company “will look to capture.”

The Four Oaks estate is currently fully let and tenants include FDC (Holdings) Ltd, Bosal Automotive and H Parkinson Haulage

“The acquisition was wholly funded through existing cash reserves and completion took place within six weeks of agreeing heads of terms,” said Harworth.

Harworth CEO Owen Michaelson said: “The acquisition of the well-located Four Oaks Business Park continues the process of increasing and improving the quality of our recurring income base whilst also providing a blend of asset management and development opportunities to generate future value.”

In the North West, Harworth is best known for delivering Logistics North, where four million sq. ft of consented space will be developed over 250 acres in Bolton and includes Aldi’s North West headquarters and distribution centre.