Rotherham-based land developer Harworth Group plc said its EPRA NDV increased 3.5% to £687 million in the six months to June 30, 2024, with the group on track to reach £1 billion by the end of 2027.

EPRA NDV stands for European Public Real Estate Association Net Disposal Value.

Harworth said its operating profit increased 164% to £21.1 million.

The firm said its existing land pipeline has the potential to deliver 38.8 million sq. ft. of Industrial & Logistics space and 26,639 plots for new homes.

It said planning permission was obtained for 1.8 million sq. ft. and 500 plots, plus a further 1.5 million sq. ft. and 500 plots post period end, alongside new draft allocations or allocations in local plans for 5.7 million sq. ft. and 2,875 plots.

Harworth Group CEO Lynda Shillaw said: “Harworth continues to consistently deliver strong progress against its strategic objectives and we remain on track to reach £1 billion EPRA NDV by the end of 2027.

“In June we announced that the Group would increase its focus on Industrial & Logistics direct development, with an intention to grow the Investment Portfolio, through direct development and selective acquisitions, to £0.9 billion by the end of 2029.

“This reflects the opportunity we see to deliver into a sector which is key to economic growth and where there is critical undersupply of high-quality space, in order to grow recurring income and underpin sustainable shareholder returns.

“The first half saw significant progress on planning approvals, adding further capacity to our near-term Industrial & Logistics pipeline and driving a strong revaluation performance.

“We are ahead of budget for land sales, with the standout transaction, as well as our largest sale to date, being the conditional £106.6 million serviced land sale to Microsoft at Skelton Grange, announced in June. The sale of serviced land provides a stable funding channel for the planned growth in our Industrial & Logistics development programme.

“Sustained demand for Harworth’s serviced land and employment spaces, alongside management actions, has underpinned EPRA NDV growth of 3.5% and we expect further growth in the second half as we continue to develop out our existing sites.

“Our current Industrial & Logistics pipeline has the potential to deliver future Gross Development Value of £5 billion which contributes significantly to the £1 billion EPRA NDV target. The near term pipeline has the ability to deliver up to £0.8 billion of Gross Development Value by the end of 2027.

“Our recent transactions, both for Commercial and Residential use, are evidence of the underlying market demand for Harworth’s high-quality land and property.

“We are cautiously optimistic that a combination of improving economic stability and supportive government policy will be beneficial for both the real estate sector and Harworth. In the near term we recognise market confidence could potentially be tempered by the extent of the steps taken by the Government to address the public funding deficit, but as a long-term investor Harworth is well versed in delivering performance through different policy environments.

“Ultimately, Harworth is a long-term through-the-cycle business and its extensive land pipeline, track record, specialist skillset and strong balance sheet sets us apart from our peers and enables us to maximise the value created from our sites for our shareholders.”