Rotherham-based land developer Harworth Group plc said it exchanged contracts to sell 48 acres of land at its Skelton Grange site in Leeds for £106.6 million to Microsoft, which will build a massive datacentre there. 

The deal is split into two sections. Plot 1, which comprises 27 acres, will be sold on an unserviced basis for about £52.9 million, targeted for completion in the second half of this year. Plot 2, which comprises 21 acres, will be sold on a serviced basis for about £53.2 million, set for completion in the first half of 2026.

Harworth said it intends to use the net proceeds to support an increased focus on the direct development of Grade A Industrial & Logistics properties from its strategic landbank which will be transferred to, and then retained in, its Investment Portfolio.

The former Skelton Grange power station site was purchased by Harworth in December 2014 for about £3 million, with remediation and enabling works commencing shortly after. The site is located to the south-east of Leeds.

Harworth Group CEO Lynda Shillaw said: “Since re-listing in 2015 Harworth has successfully completed a number of significant transactions that create value for our shareholders but this sale at Skelton Grange is the group’s largest to date and is yet another exemplary case study that demonstrates the successful regeneration of brownfield land.

“It highlights Harworth’s capabilities in identifying and acquiring complex sites, creating planning-friendly masterplans that maximise site potential, and deploying timely and effective investments into remediation and infrastructure.

“This transaction further builds our expertise to include datacentres and evidences the growing spectrum of industries that continue to be attracted to the schemes that Harworth brings to the serviced land market.”