Harworth Group Sells Land to Microsoft for £53.4 Million
Harworth Group Successfully Sells Land to Microsoft
Harworth Group plc, a prominent property regeneration company based in the UK, has successfully finalized a remarkable sale involving a 27-acre parcel of land located at Skelton Grange in Leeds, to MSFT MCIO Limited, a subsidiary of Microsoft (NASDAQ: MSFT), for a total of £52.9 million. This significant transaction marks a critical milestone as it represents the successful completion of the first phase of a larger 48-acre land deal.
Future Development Plans for Skelton Grange
As part of the ongoing development, the second plot, which encompasses an additional 21 acres, is anticipated to be finalized in the first half of 2026. The projected sale price for this parcel is approximately £53.2 million. Additionally, Harworth has secured £0.5 million in reimbursement for ensuring extra power capacity for this site. Upon the completion of both sales, Harworth anticipates an estimated investment of around £48.7 million in the overall site. With projected sales amounting to an impressive £135.7 million, this venture is expected to yield an internal rate of return (IRR) exceeding 40%.
Commitment to Sustainable Development
In line with its vision, Harworth Group is retaining 16 acres of the Skelton Grange site, intending to develop approximately 250,000 square feet of employment space. The company has played a pivotal role in the revitalization of the site since purchasing the previous power station land back in December 2014 for roughly £3 million. The final development is set to encompass Grade A industrial and logistics space, a hyperscale data center, a battery energy storage system, an energy-from-waste facility, and restored natural habitats, all contributing to a sustainable future for the area.
Harworth’s Strategic Partnership with Microsoft
Lynda Shillaw, the CEO of Harworth, stated that the company is diligently collaborating with Microsoft and other key stakeholders to ensure the complete remediation and servicing of the site for the upcoming tranche of the sale. She emphasized Harworth's pivotal role as a champion of brownfield land regeneration, highlighting how this transaction underscores the company’s expertise, particularly in the sector connected to data centers.
Reinvestment in Future Opportunities
The proceeds gleaned from the Plot 1 sale will be strategically reinvested into Harworth’s expansive 9.6 million square feet of consented industrial and logistics pipeline along with other high-value prospects within its current portfolio. The company, which is proudly listed on the London Stock Exchange (LON: LSEG) and actively participates in the FTSE 250 index, specializes in breathing new life into complex sites through innovative and sustainable developments.
Conclusion and Future Outlook
This notable transaction not only reflects the successful partnership between Harworth Group and Microsoft but also highlights Harworth's unwavering dedication towards sustainable development and investment within the UK. As the company continues to transform former industrial sites, it lays a strong foundation for future economic growth and environmental stewardship, serving as an exemplary model for property regeneration in the contemporary landscape.
Frequently Asked Questions
What land parcel did Harworth Group sell to Microsoft?
Harworth Group sold a 27-acre land parcel at Skelton Grange in Leeds to Microsoft.
How much was the land sold for?
The land was sold for a total of £52.9 million.
What are the future plans for the additional land?
The additional 21-acre Plot 2 is expected to be sold for approximately £53.2 million in the first half of 2026.
What type of developments will be included in the Skelton Grange site?
The development will include Grade A industrial and logistics space, a hyperscale data center, an energy-from-waste facility, and more.
Who is the CEO of Harworth Group?
Lynda Shillaw is the CEO of Harworth Group.
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