Stenprop Limited Disposal of Victoria Retail Centre for EUR37.45M (2165J)
December 21 2020 - 1:00AM
UK Regulatory
TIDMSTP
RNS Number : 2165J
Stenprop Limited
21 December 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
21 December 2020
STENPROP TAKES SIGNIFICANT STEP TOWARDS 100% MULTI-LET
INDUSTRIAL FOCUS WITH SALE OF VICTORIA RETAIL CENTRE IN BERLIN
EUR37.45 million sale will increase MLI portfolio weighting to
68%
Stenprop, the UK multi-let industrial ("MLI") property company,
announces that it has exchanged contracts on the sale of its
freehold interest in the Victoria Centre in Berlin, Germany (the
"disposal") to Art-Invest Real Estate Funds GmbH for EUR37.45
million. The disposal price is at our 30 September book value and
reflects a 19.3% (EUR6.05 million) premium to the 31 March 2020
book value^.
The disposal of this retail centre is in line with Stenprop's
strategy to become a 100% UK MLI business via the sale of all
non-core properties in its portfolio and the reinvestment of the
proceeds into UK MLI properties. Since 30 September 2020, Stenprop
has acquired five MLI estates totalling GBP25.8 million which have
taken the percentage of MLI in the portfolio to 64% (based on
September 2020 book values and purchase prices for the recently
acquired assets). Following completion of the sale of the Victoria
Centre, this percentage will rise to 68 %.
Net proceeds from the sale after deduction of anticipated
transaction costs, repayment of debt and property taxes is expected
to be EUR 24.1 million. Stenprop intends to use the net proceeds
from the disposal to fund further acquisitions in UK multi-let
industrial property.
Providing 13,718 sqm of gross lettable space, the Victoria
Centre is let to eight tenants and anchored by supermarket chain
Kaufland. The weighted average rental is currently circa EUR 10.60
per sqm.
James Wakelin, Head of debt and special projects at Stenprop,
commented:
" Our second Berlin retail centre disposal, achieved at a 19.3%
premium to our March valuation, underlines both the strength of
these assets and their appeal to the German domestic investor
market as well as our ability to successfully execute on our stated
asset management initiatives. The sale will allow us to continue
our MLI acquisition programme in the UK , which has accelerated
since the summer with the addition of 790,000 sq ft of new MLI
space added to the portfolio."
Completion of the disposal is expected to occur upon
satisfaction of the last conditions precedent described below and
by no later than six months after the date of exchange, following
which the disposal price will be paid to the seller. Failure to
complete due to a default by the purchaser will result in the
seller retaining the deposit amount of EUR 3.745 million which was
paid by the purchaser into an escrow account on 18 December 2020.
Either party may terminate the disposal agreement should the
property suffer significant structural damage resulting in rent
losses exceeding 40% over a period of six months.
The disposal agreement contains market standard representations
and warranties for a deal of this size and nature. A retention of
EUR2.5 million from the purchase price will be held in an escrow
account in respect of claims against and for certain liabilities of
the seller under the disposal agreement for a period of up to 13
months.
Completion of the disposal is subject to the following
conditions precedent:
-- Confirmation that the municipality has not exercised its pre-emption right;
-- Registration of a priority notice in favour of the purchaser
in the land registry; and
-- Deletion of existing encumbrances
^The property was valued at 30 September 2020 at the sales price
of EUR37.45 million by the directors of the Company. The directors
of the Company are not independent external valuers and are not
registered as professional valuers in terms of the Property Valuers
Professions Act, No.47 of 2000 or with the Royal Institution of
Chartered Surveyors. The net operating profit attributable to the
property for the six months ending 30 September 2020 was EUR 0.58
million . This information has been extracted from Stenprop's
interim results for the six months ending 30 September 2020 which
were prepared under International Financial Reporting
Standards.
Stenprop has a primary listing on the Main Board of the
Johannesburg Stock Exchange and a listing on the Specialist Fund
Segment of the Main Market of the London Stock Exchange. This
disposal is classified as a category 2 transaction in terms of the
JSE Listings Requirements. Accordingly, it is not subject to
approval by shareholders.
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson (paul.arenson@stenprop.com)
Julian Carey (julian.carey@stenprop.com)
James Beaumont (james.beaumont@stenprop.com)
Numis Securities Limited (Financial Adviser) +44(0)20 7260
1000
Hugh Jonathan
Vicki Paine
FTI Consulting (PR Adviser) +44(0)20 3727 1000
Richard Sunderland
Richard Gotla
Neel Bose
Stenprop@fticonsulting.com
Java Capital +27 (0)11 722 3050
(JSE Sponsor)
About Stenprop:
Stenprop is a UK REIT listed on the LSE and the JSE. The
objective of the Company is to deliver sustainable growing income
to its investors. Stenprop's investment policy is to invest in a
diversified portfolio of UK multi-let industrial (MLI) properties
with the strategic goal of becoming the leading MLI business in the
UK. For further information, go to www.stenprop.com.
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END
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