Harworth sells Ironbridge land parcel to Taylor Wimpey

20th Jun 2024 12:17

(Sharecast News) - Land and property regenerator Harworth Group announced the completed sale of a 16-acre serviced land parcel at its Benthall Grange mixed-use development on the site of the former Ironbridge Power Station in Shropshire on Thursday.

The London-listed company said the land was sold to Taylor Wimpey UK for £19.55m.

It said the transaction was the second phase of its extensive regeneration project at the Ironbridge site.

Previously, a nine-acre land parcel was sold to Barratt and David Wilson Homes Mercia in December 2022.

With the sales, nearly a third of the total available plots at the development had now been sold.

Taylor Wimpey was planning to develop 200 homes on the newly-acquired land, in addition to the 110 homes already under development by Barratt and David Wilson Homes.

The board said the sale price of £19.55m exceeded the book value as of 31 December.

It said the proceeds from the sale would enable the firm to advance other regionally-significant projects, and accelerate its industrial and logistics development programme.

Harworth secured planning approval for the Ironbridge Power Station regeneration in September 2021, after acquiring the 350-acre site in June 2018.

The development plan included over 1,000 new homes, a retirement village, 200,000 square feet of employment space, and a local centre with convenience retail and other services.

Community amenities would feature a new primary school, allotments, sports pitches, and the transformation of the site's 1930s pumphouse into a flexible space for community and leisure uses.

The entire scheme was expected to be completed by 2030.

"This transaction highlights the continued appeal of our serviced land to housebuilders, enabling them to quickly execute on their own delivery plans to create new homes in highly desirable communities," said chief executive officer Lynda Shillaw.

"It provides a clear example of how, as a master developer, we are able to create and release value through our extensive landbank to fund our industrial and logistics development programme, supporting our ambitious growth plans to reach £1bn EPRA net development value by the end of 2027."

At 1153 BST, shares in Harworth Group were up 0.53% at 143.25p.

Reporting by Josh White for Sharecast.com.