LONDON - Harworth Group plc, a UK-based property regeneration company, has finalized the sale of a 27-acre land parcel at Skelton Grange in Leeds to MSFT MCIO Limited, a subsidiary of Microsoft (NASDAQ:MSFT), for £52.9 million. The transaction, which was announced today, marks the completion of the first phase of a larger 48-acre land deal.
The sale of the additional 21-acre Plot 2 is expected to be completed in the first half of 2026 for approximately £53.2 million. Harworth has also received £0.5 million in reimbursement for securing extra power capacity for the site. With the completion of the sales of both plots, Harworth anticipates an investment of around £48.7 million in the site, with projected sales totaling £135.7 million, resulting in an internal rate of return (IRR) exceeding 40%.
Harworth retains 16 acres of the Skelton Grange site to develop approximately 250,000 square feet of employment space. The company has been instrumental in the site's transformation since purchasing the former power station land in December 2014 for about £3 million. The development is expected to include Grade A industrial and logistics space, a hyperscale data center, a battery energy storage system, an energy-from-waste facility, and restored natural habitats.
Lynda Shillaw, CEO of Harworth, said the company is working closely with Microsoft and other stakeholders to fully remediate and service the site for the second tranche of the sale. She highlighted Harworth's role as a regenerator of brownfield land and noted the transaction's contribution to the company's expertise, particularly in data centers.
The proceeds from the Plot 1 sale will be reinvested into Harworth's 9.6 million square feet of consented industrial and logistics pipeline and other high-value opportunities within its portfolio. The company, listed on the London Stock Exchange (LON:LSEG) and part of the FTSE 250 index, specializes in regenerating complex sites into new developments.
This news is based on a press release statement and reflects the completion of a significant land transaction between Harworth Group and Microsoft, emphasizing Harworth's ongoing commitment to sustainable development and investment in the UK.
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