Harworth Estates, the UK property regeneration company, has forward sold and secured infrastructure funding for the first speculative industrial development in Yorkshire for six years.
The funding will enable Harworth to begin development next month of 100,000 sq ft of industrial units on seven acres of land at the Advanced Manufacturing Park (AMP) in Rotherham, South Yorkshire.
The development, called R-evolution @ The AMP, received detailed planning consent in February 2014.
In two separate transactions Harworth has completed a forward-purchase agreement for the first phase of the development with Rotherham Metropolitan Borough Council for £4.3 million and secured a £2.7 million loan from the Sheffield City Region Joint European Support for Sustainable Investment in City Areas (JESSICA) Fund.
The forward-purchasing agreement will involve Rotherham Metropolitan Borough Council taking ownership of R-evolution’s first phase when it is completed in October 2014.
Harworth will be responsible for the delivery and the leasing of the development.
The money from Sheffield City Region’s JESSICA Fund, which was set up to support infrastructure and real estate investment opportunities across the region, will pay for infrastructure works and the construction of new manufacturing units at R-evolution.
Owen Michaelson, chief executive of Harworth Estates, said:
“We will deliver a first-class development for Rotherham Council.
“In a region where the availability of equivalent-quality stock is reducing, we expect to attract top-quality tenants, which will allow Rotherham to benefit from secure, long-term rental income from the development.”
Paul Woodcock, director of planning, regeneration and culture, Rotherham Metropolitan Borough Council, said:
“The Advanced Manufacturing Park is synonymous globally with cutting edge expertise in advanced manufacturing technology, and as a result there is strong demand from high quality manufacturing businesses, who want to join the world-class companies already located here in Rotherham.
“The R-evolution project will provide opportunities for these businesses to grow at the AMP, both further enhancing the reputation of the Park and benefitting Rotherham through the creation of more high quality jobs and investment into the borough.”
Chris Scholey, Local Enterprise Partnership Board (LEP) member and chair of the Sheffield City Region Enterprise Zone Governance Board, said:
“The LEP welcomes the news that Harworth Estates and Rotherham Council are progressing quickly with plans for R-evolution @ The AMP, which is part of the Sheffield City Region Enterprise Zone.
“It is easy to see why the Advanced Manufacturing Park (AMP) is so attractive to investors, with the likes of Rolls-Royce, Boeing and Sheffield University rapidly expanding their operations.
“The tax incentives that Enterprise Zone status brings make the Sheffield City Region incredibly attractive, and R-evolution will help to ensure that international investors can set up quickly and easily.”
Richard Smith, partner at hlw Keeble Hawson who acted for Harworth Estates, said:
“This project is an encouraging sign of growing confidence and recovery in the market.
“The development is likely to be tempting to prospective occupiers as the Advanced Manufacturing Park is South Yorkshire’s ‘jewel in the crown’.”
R-evolution @ The AMP is located at Harworth’s Waverley site, which is being transformed into Yorkshire’s largest-ever mixed-use development.
The 740-acre development comprises an Advanced Manufacturing Park with world-leading occupiers, employment development and a new community of 4,000 homes along with shops, restaurants, schools, leisure & community facilities and parks.
The Advanced Manufacturing Park is the UK’s premier advanced manufacturing technology park.
Businesses on the park already provide world-class technology solutions for use in precision industries, including aerospace, defence, construction, automotive, sport and others.
It is home to world-class organisation such as Boeing, Rolls-Royce, Castings Technology International (CTI), Dormer Tools, Sandvik Coromant and TWI.
The Park still has four employment phases comprising over 68 acres available for a variety of employment uses, all of it benefitting from Enterprise Zone status.