Stenprop Limited Acquisition of three multi-let industrial estates (5509R)
March 09 2021 - 1:00AM
UK Regulatory
TIDMSTP
RNS Number : 5509R
Stenprop Limited
09 March 2021
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
9 March 2021
STENPROP CONTINUES MULTI-LET INDUSTRIAL TRANSITION WITH THREE
ACQUISITIONS TOTALLING GBP18.4 MILLION
GBP84.2 million of MLI acquired across 13 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 in Newcastle, Bromborough and Bradford, have been purchased
in separate transactions for a total consideration of GBP18.4
million, reflecting a net initial yield of 6.7% and a capital value
of GBP99 per sq ft. It brings the total number of MLI acquisitions
since 30 September 2020 to eight for an aggregate value of GBP44.2
million.
Located three miles from Newcastle City Centre, Stenprop has
acquired Riverside Industrial Estate for GBP10.9 million from
Aegon. Comprising 14 units across four terraces and two detached
units, the property is let to a diverse occupier base spanning
distribution, construction and trade counter uses. It currently
generates a total annual passing rent of GBP784,660, equating to a
low average rent of GBP6.40 per sq ft on occupied units. There are
two vacant units which are already generating strong interest from
potential occupiers. The acquisition grows Stenprop's portfolio in
the North East, a market characterised by record take up in 2020
which has resulted in constrained supply, following the acquisition
of Mandale Business Park in Durham in November 2020 for GBP11.2
million.
Lake Enterprise Centre in Bromborough has been acquired in an
off-market transaction for GBP4.15 million. The estate, which is
94% occupied and generates a passing rent of GBP296,000 per annum,
is strategically located immediately adjacent to an existing
holding, in a market characterised by a strong level of demand
offering scope for future rental growth.
In a third, off-market, transaction, Stenprop has acquired
Enterprise 5 in Bradford for GBP3.37 million. Comprising 17 units,
the estate is currently fully-let with a passing rent of GBP234,000
per annum. The well-located property has a strong letting history
and its location in a densely populated urban area is expected to
underpin continued high levels of occupancy and generate strong
future rental growth.
With these acquisitions, and following the completion of
Stenprop's German retail centre asset sales, which have already
exchanged and are expected to complete soon, Stenprop's MLI
portfolio will account for 73% of total assets, 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: "We have
started 2021 where we ended last year, defying the macro economic
uncertainty and lockdown restrictions to grow the MLI portfolio
through identifying and executing upon on and off market
acquisitions and adding well let properties in supply constrained
locations where there is an opportunity to increase rents. Both the
near and long-term drivers underpinning investment in the sector
remain compelling, with strong rental growth and acquisition below
replacement cost values. Our local management teams are looking
forward to working with the new customers and to rolling out our
industrials.co.uk operating platform across these estates."
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.
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