Harworth raises £28m to expand land bank

Harworth CEO Owen Michaelson

Rotherham-based real estate and brownfield regeneration firm Harworth Group said it conditionally raised £27.8 million by placing 29.2 million new shares at 95p in order to accelerate the expansion of its strategic land bank.

Harworth CEO Owen Michaelson said: “An important part of our strategy is to replenish our land and property portfolio, both by securing new recurring income streams and to grow and expand our strategic land bank, which is fundamental to us continuing to deliver value to our shareholders.

“While we have made good progress in the past two years in securing valuable acquisition opportunities, today’s placing enables us to accelerate our acquisition strategy through the funding of the purchase of, and investment in, further sites to support the long term growth prospects of the business.”

Harworth said it recently entered into four option agreements to acquire 200 acres of strategic land, the masterplans for which are expected to deliver 1,500 residential plots and 600,000 sq. ft. of new commercial space, requiring £19.2 million to exercise the options and fund the first three years of expenditure.

Harworth said its strategic land bank now increases to 2,750 acres, including 10,429 consented residential plots and 10.4 million consented sq. ft. of commercial space.

It said four further potential strategic land opportunities were in negotiation to acquire up to 407 acres of strategic land for residential and commercial development, requiring £15.5 million investment. 

Investec and Canaccord Genuity are acting as joint bookrunners and joint brokers to the placing.