Harworth accelerates data centre and industrial ambitions
Amid the ongoing takeover attempt by Peel Group, the Yorkshire-based developer has released its half year results and is continuing to focus on becoming a ‘pure play’ powered land I&L specialist.
The regeneration and strategic land developer said it was progressing a substantial data centre pipeline with accepted power offers totalling 0.8GW.
Its final plot sale to Microsoft at Skelton Grange is progressing towards completion, concluding its first powered land sale, while Harworth has also entered into an exclusivity agreement with a leading data centre provider on a second powered land sale for a hyperscale data centre – at this point, Harworth will not disclose where this is located.
A further four hyperscale data centre opportunities have been identified, with delivery progressing into the near to medium term.
Harworth estimates potential future profits of £293m from the sale of its existing powered land portfolio as serviced powered land for data centres, assuming full ownership, planning is achieved, and power is secured.
The group is also planning to exit the residential sector and refocus on strategic land, enabling works and selective development.
It said occupier demand remained strong across its industrial and logistics portfolio, with three pre-lets completed or in legals, adding £3.7m of annualised rent at a 17% premium to combined ERV.
Harworth is also in negotiations over a further 1.5m sq ft of space across industrial & logistics and powered land.
Its Investment Portfolio is now 77% grade A by value, with post-period-end lettings and a secondary asset sale ahead of book value expected to drive further progress towards its 100% grade A target.
The group said it had completed, was negotiating definitive contracts, or had agreed terms on 58% of budgeted full-year sales, including 952 residential plots.
Harworth’s land bank now comprises 34.8m sq ft and 0.8GW of industrial & logistics and powered land, with 73% consented or in the planning system.
It has 3.8m sq ft of substantially construction-ready land, offering around £600m of GDV potential over the next three to five years.
The group reported an EPRA NDV reduction principally driven by residential market headwinds, including softer demand and increased costs in housebuilder end markets, resulting in a Total Accounting Return of (3.7)% compared with 1.1% in H1 2025.
Industrial & logistics valuations remained broadly stable, with management actions to drive value across the pipeline, including data centre sites, largely offsetting macroeconomic-driven increases in labour and materials costs.
Harworth had available liquidity of £99.5m at 30 June 2026, up from £59.8m a year earlier, while statutory net assets decreased 4.0% to £670.8m from £699.0m at 31 December 2025.
Lynda Shillaw, chief executive of Harworth, commented: “Harworth has made good operational and strategic progress during the first half of 2026 and into the second, against a challenging macroeconomic backdrop that has weighed on valuations, particularly in residential.
“Since 2021 we have successfully repositioned our land and development portfolio, shifting the weighting to 71% industrial & logistics and developing a significant powered land bank, in turn positioning the business to deliver strong returns to shareholders into the medium term.
“Our 34.8m sq ft land and development pipeline, which includes 0.8GW of powered land, would be difficult to replicate today given its scale, together with the advanced planning and power supply status, and strategic locations, of many of its sites.
“Within this pipeline, we are seeing strong occupier demand across our industrial & logistics products, driven by structural growth trends. This includes the first pre-let at our 1.1m sq ft Chatterley Park site in Staffordshire, to an advanced manufacturing occupier.
“Our largest-ever substantially construction-ready land bank of 3.8m sq ft positions us to further capture this momentum through a combination of pre-lets, land sales and small to mid-box speculative builds.
“Today we are providing more details on our acceleration of key initiatives, which builds on our successful track record over the past five years and, supported by our in-house skillset and extensive land bank, means we are well positioned to take full advantage of the compelling opportunities that lie ahead.
“The board believes that its execution will create a simpler, lower-cost and higher-returning platform to deliver future growth for Harworth shareholders.”
