The Development Phase of Project Worth
The Company’s estimate of a portfolio worth in excess of £900 million by 2012, takes account only of the increase in asset value arising out of the obtaining of optimum planning consents. Beyond the gaining of the consents the Company will participate, as appropriate, in the development phase of its schemes, either by Joint Venture with industry sector specialists or through direct development. In principal, the Company will maximise income from its residential land opportunities by obtaining planning consents, installing principal infrastructure and then selling oven ready development sites to, as appropriate, national, regional and local house builders. The Company expects in addition to capital receipts on disposal, to also benefit from open book partnering with house builders and to obtain overage from out performance in the sector and the success of the individual schemes.
Commercial employment use developments will be undertaken either through direct development by the Company or, as in the case of large and specialist developments in the distribution and other specialist sectors, by Joint Venturing with national and international experts. Three large distribution schemes in Joint Venture with Gazeley, Prologis and Graftongate (along with funding partners, Legal & General) typify current projects.
Existing and Future Mixed Use Business Parks
Harworth Estates currently operates three business parks on former colliery sites with a current value of approximately £50 million. Two further sites have recently received planning consent on appeal, and other business park opportunities are going through the planning process.
At the end of 2007 net rental income stood at £6 million, principally by way of income from these business parks and the agricultural estate. These business parks tend to be targeted towards local and regional occupiers who need well connected and cost effective business space for their SME businesses.
As the success of Project Worth kicks in, further new large scale business parks targeting large regional, national and international occupiers will be developed, either direct or in Joint Venture. A number of these new generation business parks will follow on from the Company’s surface mining activities on major well connected sites throughout the Midlands and North of England. One particular site at Bolton in Greater Manchester is set to create a major new business park of regional and national importance on completion of the current surface mining scheme and the end of 2010.