Microsoft completes Skelton Grange plot 1 purchase for £53m

Harworth has concluded the 27-acre sale at its Leeds power station site, with plot 2 expected to close in the first half of 2026.

Contracts were originally exchanged in June 2024, for the conditional sale of 48-acres split over two plots.

Plot one has been sold for £53.4m and plot 2 is expected to fetch £53.2m.

Harworth will retain 16-acres at the site, which will comprise 250,000 sq ft of employment space, in addition to 77-acres owned through the Aire Valley Land joint venture.

Servicing of plot 1 will be completed by Harworth as development manager under a separate development agreement, which will now commence alongside servicing works to support the sale of plot 2.

Upon completion of the sale of both plots, Harworth will have invested roughly £49m in the site and realised around £136m in sales.

Harworth Group purchased the former Skelton Grange power station site in December 2014 for £3m.

Located to the south east of Leeds, work undertaken by Harworth as master developer since acquisition has included remediation and enabling works, optimising the planning status of the site, and acquiring a further 21 acres of adjoining land.

Once the development is complete, Skelton Grange will provide around 250,000 sq ft of grade A industrial & logistics space, a hyperscale datacentre, a Battery Energy Storage System facility, an Energy from Waste facility, and 28-acres of land returned to natural habitat alongside improved green travel infrastructure, which Harworth estimates will represent in excess of £4bn of inward investment.

Lynda Shillaw, chief executive at Harworth commented: “I am delighted to be able to announce that we have completed the first phase of our landmark 48-acre land sale at Skelton Grange to Microsoft.

“Our technical teams are now fully mobilised and initial site works are underway.

“We continue to work closely with Microsoft and other key stakeholders as we focus on the full remediation and servicing of the site to enable the second tranche of the sale, which remains on track for H1 2026.

“Skelton Grange has the most challenging ground conditions of any of our sites and is a fantastic example of the value Harworth delivers as a leading regenerator of brownfield land through optimising our masterplans, deploying timely and effective investments into remediation and infrastructure and creating a scheme that has attracted a range of industries.”