Harworth Group has strengthened its financial position by securing a new £275 million revolving credit facility with its long standing lending partners. The move gives the land and property company a broader platform for future activity, particularly as it continues to grow its portfolio across the North of England and the Midlands. At the core of this development is the Harworth Group refinancing strategy, which aims to enhance flexibility, extend debt maturity and support long term investment.
The new arrangement comes via a syndicate made up of NatWest, Santander and HSBC. Harworth also has the option to bring additional lenders into the fold. The revolving credit facility includes an uncommitted accordion option that, if activated, would increase the total to £325 million. It marks a notable improvement on the previous £240 million facility and reflects confidence in the Harworth Group refinancing strategy from its banking partners.
One of the key advantages is the improved core margin, now set at 200 basis points over SONIA. The facility begins with a four year term and may be extended to a fifth year with lender approval. The extended maturity profile stretches Harworth’s debt commitments by approximately two and a half years, giving the company more time and space to deliver on its operational goals. This sits neatly within the aims of the Harworth Group refinancing strategy, which places stability and prudent growth at the forefront.
Kitty Patmore, chief financial officer, highlighted the conditions that enabled the company to move decisively. She stated: “We have been able to take advantage of favourable market conditions, and the strong relationships we have with our core blue-chip banking partners, to refinance our RCF on improved terms.” She added that the extension to the end of 2029, reduced costs and added flexibility would support investment across Harworth’s extensive pipeline of sites.
Another important point remains unchanged. Harworth is still targeting a net loan to portfolio value of below 20 per cent at year end, and 25 per cent throughout the year. This has long been part of its measured approach to growth. The Harworth Group refinancing strategy continues to blend discipline with opportunity, especially as the organisation oversees more than 15,000 acres of land across 100 locations.
For a business deeply involved in land ownership, development and long term asset management, the ability to react to market conditions is crucial. This new facility should give Harworth added confidence as it prepares for its next phase of activity.
