Harworth Group has signed an agreement with an undisclosed logistics operator to develop a 2,800m2 last-mile parcel and postal distribution facility at Gateway 36 in Barnsley in the UK on a 20-year lease term.
The facility will be built to Harworth’s proprietary building specification, targeting BREEAM Excellent certification and an EPC rating of A, and will include rooftop solar PV panels, LED lighting and EV charging points. Subject to reserved matters planning approval, construction is expected to begin shortly, with completion targeted for late 2027.
Once complete, the building will be added to Harworth’s Investment Portfolio, a predominantly Grade A portfolio generating recurring rental income, which was valued at £305m (US$413m) with an annual rent roll of £18.3m (US$24m) as of December 2025.
Gateway 36 is located adjacent to Junction 36 of the M1 motorway and has received infrastructure funding from the South Yorkshire Mayoral Combined Authority as part of the UK government’s South Yorkshire Investment Zone. Occupiers may also access financial and business support through Enterprising Barnsley. The new unit forms part of Phase 2 of the development, which has already delivered 10,200m2 of distribution space for retailer Dunelm, fashion brand Lucy & Yak and home improvement specialist BOXT.
The remaining Phase 2 units are available on a build-to-suit basis. The two largest, Units 4 and 7, have reserved matters planning consent for developments of 12,000m2 and 14,000m2 respectively.
Jonathan Haigh, chief investment officer at Harworth, said, “Gateway 36 has established itself as a major hub for distribution and logistics in Yorkshire, with a wide range of occupiers on site. This latest transaction, which will see us develop and let a unit to a key logistics operator, is a strong endorsement of the site’s excellent transport connectivity, with direct access to Junction 36 of the M1 motorway. We continue to see strong interest in the remaining land parcels at Gateway 36 and look forward to working with partners to delivering further units on a build-to-suit basis.”
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