Harworth Group has signed an agreement with an undisclosed logistics operator to develop a 2,800 sq m last-mile parcel and postal distribution facility at Gateway 36, Barnsley, on a 20-year lease term; construction is expected to begin shortly subject to reserved matters planning approval, with completion targeted for late 2027, after which the unit will be added to Harworth's Investment Portfolio.

Harworth Group plc (LSE: HWG) is a Rotherham-headquartered brownfield regeneration, strategic land and development business operating across Yorkshire, the Midlands and North West England. For FY2025, Harworth reported revenues of £129.7 million and operating income of £21.6 million, delivering a total property return of 8.4% against the MSCI UK Annual Property Index of 5.6%.

The Investment Portfolio was valued at £305 million with an annual rent roll of £18.3 million as of December 2025. Gateway 36, located adjacent to Junction 36 of the M1 motorway in Barnsley, is a South Yorkshire Investment Zone site with infrastructure funding from the South Yorkshire Mayoral Combined Authority. Phase 2 has already delivered 10,200 sq m for Dunelm, Lucy & Yak and BOXT; remaining Phase 2 land includes Units 4 and 7 with reserved matters consent for 12,000 sq m and 14,000 sq m, available on a build-to-suit basis.

The structural driver is the last-mile parcel market's continued expansion into South Yorkshire as e-commerce volumes grow. Last-mile facilities require direct motorway junction access, large sorting floor plates and extensive HGV and van access, specifications that gateway-adjacent sites satisfy more efficiently than traditional urban industrial locations. The 20-year lease term is notably long for a last-mile distribution unit, signalling a strategic South Yorkshire depot commitment rather than a transitional lease.

For Harworth, the transaction converts development pipeline into recurring income: the unit transfers to the Investment Portfolio on completion, generating stable rental income alongside Harworth's development margin. The proprietary BREEAM Excellent specification, incorporating rooftop solar, LED lighting and EV charging, aligns the unit with occupiers' increasingly mandatory sustainability requirements for logistics facilities.

For the sector, Gateway 36's progressive letting, from a retailer through a fashion brand to a parcel operator, reflects the broadening of Yorkshire's logistics occupier base beyond traditional distribution into last-mile urban delivery infrastructure.

Source: parcelandpostaltechnologyinternational.com / harworthgroup.com / advfn.com / investegate.co.uk