Stenprop Limited Acquisition of three multi-let industrial estates (4308J)
December 22 2020 - 01:00AM
UK Regulatory
TIDMSTP
RNS Number : 4308J
Stenprop Limited
22 December 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
22 December 2020
STENPROP CONTINUES MULTI-LET INDUSTRIAL TRANSITION WITH THREE
ACQUISITIONS TOTALLING GBP11.82 MILLION
GBP66 million of MLI acquired across ten estates since 1 April
2020
Stenprop, the UK multi-let industrial ("MLI") property company,
has acquired three multi-let estates as it remains on target to be
a fully focused MLI REIT by the end of the next financial year. The
three estates in Edinburgh, Cardiff and Wigan have been purchased
in separate transactions for a total consideration of GBP11.82
million. This brings the total number of MLI acquisitions since 30
September 2020 to five for an aggregate value of GBP25.8
million.
The 81,495 sq ft estate in Wentloog, Cardiff has been acquired
for GBP6.25 million, reflecting a net initial yield ("NIY") of
6.3%, in an off-market transaction. It currently generates a total
annual passing rent of GBP417,611, equating to an average rent of
GBP5.04 per sq ft on occupied units. The 13-unit, modern estate
benefits from its prime location four miles from the city centre
and is occupied by a mix of national and international occupiers,
including FedEx and National Grid. The estate forms part of the
wider Capital Business Park estate, the freehold of which is owned
by Stenprop, thus providing the Company an opportunity to release
significant marriage value and further asset management
opportunities.
Stenprop has also acquired R6 Industrial Estate in Newbridge for
GBP3.9 million, reflecting a NIY of 6.4%. The property complements
Stenprop's two existing estates in Edinburgh and gives the Company
further critical mass in a market characterised by a shortage of
supply which is underpinning vacancy rates below 4%. The recently
refurbished 31,860 sq ft estate generates an annual passing rent of
GBP264,510, equating to an average rent of GBP8.14 per sq ft on
occupied units.
The final transaction is the purchase of Otterwood Square in
Wigan for GBP1.67 million, reflecting a NIY of 6.6%. The 18,867 sq
ft property comprises 12 units, generating a current passing rent
of GBP117,000, equating to an average rent of GBP6.03 per sq ft on
occupied units. It sits within Martland Mill Industrial Estate,
Wigan's most established industrial park, which is less than a mile
from the M6 motorway.
As a result of these acquisitions, Stenprop will have invested
GBP66 million since 1 April 2020 and the Company's MLI portfolio
now accounts for 64% of Stenprop's total assets, up from 58% at the
start of the year, as it remains on track to be 100% MLI by the end
of the next financial year.
Will Lutton, Head of Investment at Stenprop, commented: "Despite
some periods of subdued investment activity during the year as a
result of COVID-19, we were able to leverage the data from our
Industrials.co.uk platform to identify the post lockdown recovery
early. This gave us the confidence to begin investing ahead of the
markets opening fully and allowed us to finish the year strongly.
These three MLI estates are in excellent industrial locations and
offer strong day one income alongside a range of both near and
longer-term asset management opportunities to drive rents and
capital growth. In line with previous acquisitions, our strategy is
to work closely with the occupiers to align their occupation with
various estate management improvements. Reflecting the compelling
fundamentals underpinning the sector, alongside the strength of our
proprietary industrials leasing platform, we remain on track to be
75% MLI by the end of the current financial year."
This announcement is voluntary and for information purposes
only.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQQFLFLBLLEFBX
(END) Dow Jones Newswires
December 22, 2020 02:00 ET (07:00 GMT)
Industrials Reit (LSE:MLI)
Historical Stock Chart
From Feb 2024 to Mar 2024
Industrials Reit (LSE:MLI)
Historical Stock Chart
From Mar 2023 to Mar 2024