Land regeneration specialist Harworth Group has sold the 149-acre Kellingley site to HPREF I Konect Investments SARL, a real estate investor related to Henderson Park Capital Management.
The site has planning permission for a large logistics park.
HPREF has agreed to pay £54m on completion of the transaction, which will complete only when all sale conditions are satisfied, including the approval of a reserved matters planning application which has been submitted and is currently awaiting determination. A long-stop date of 31st August 2022 has been set.
Harworth took control of the 149-acre Kellingley site in 2016, following the closure of the former Kellingley Colliery. As master developer, working with the Coalfields Regernation Trust, it has since undertaken land remediation and in 2019received outline planning consent from Selby District Council for the development of 1.4 million sq ft of industrial and logistics space. The site, marketed as 'Konect', had a valuation of £31.1m as at 30th June 2021 and generated gross profits of £30,000 in the six months to 30th June 2021.
Harworth chief executive Lynda Shillaw said: "Since 2016, Harworth has invested in Kellingley, creating Konect, which benefits from road, rail and canal connectivity, and establishing it as a regionally significant location with the potential to deliver up to 1.4 million sq ft of industrial & logistics space. Once realised, this development will provide significant employment opportunities and stimulate further investment in the surrounding area.
"The completion of this sale, which is conditional on the receipt of a planning approval, would allow Harworth to accelerate the realisation of value from this site. The sale proceeds will be used to continue the build-out of our other development sites, including our consented industrial sites in Yorkshire, and for expanding our strategic landbank, in-line with our recently announced strategy."
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