Harworth sells Chorley industrial for £5.3m
Kerax Holdings has acquired Moorland Gate Business Park from the developer in a deal representing a net initial yield of 7.5%.
Moorland Gate Business Park comprises 18 units totalling 134,200 sq ft. The 11-acre property sits adjacent to the M61 to the southeast of Chorley’s town centre.
Harworth Group acquired Moorland Gate Business Park in 2016 from FDC Holdings for £4.5m. The developer then began an asset management programme for the business park, increasing the occupancy from 40% to more than 80%.
The £5.3m sales figure represents a capital value of £42/sq ft.
Andrea Morley, director of asset management at Harworth, said: “Since our acquisition of Moorland Gate Business Park in 2016, Harworth has undertaken extensive asset management work and has been successful in enhancing the occupier line-up and reducing vacancy at the site.
“We are pleased to have completed this sale as we focus on our strategy to transition our investment portfolio to 100% Grade A space.”
That strategy calls for the 100% Grade A space goal to be reached by 2027. Disposing of older assets whose value has been maximised, while maintaining the units Harworth is developing itself is the primary method for achieving that target, according to Harworth.
Savills advised Harworth on the disposal of Moorland Gate Business Park. Gateley was the legal consultant for Kerax.