Stenprop Limited Completion of MLI Acquisition & Retail Asset Sales (2026U)
April 01 2021 - 1:00AM
UK Regulatory
TIDMSTP
RNS Number : 2026U
Stenprop Limited
01 April 2021
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
1 April 2021
STENPROP COMPLETES FURTHER GERMAN RETAIL ASSET SALES AND THE
ACQUISITION OF A MULTI-LET INDUSTRIAL ESTATE IN SWINDON
Stenprop, the UK multi-let industrial ("MLI") property company,
announces that it has completed several transactions which further
progress its strategic goal of becoming a fully focussed MLI REIT
and comprise:
-- The acquisition of the Headlands Trading Estate in Swindon for GBP7.4 million;
-- The disposal of the Bikemax portfolio of five German retail
warehouse units based on a property value of EUR27 million; and
-- The sale of the Victoria Centre retail property in Berlin for
EUR37.45 million, having announced that contracts had exchanged on
21 December 2020.
The sales of all the German assets were based on the 30
September 2020 book values, having been written up from the 31
March 2020 valuations to their anticipated disposal prices due to
the sales process being progressed at that time. The anticipated
transaction costs were also taken into account in determining the
Company's NAV per share as at 30 September 2020.
Headlands Trading Estate provides 106,000 sq ft of MLI space
across 19 units and is fully let to a diverse occupier base. The
acquisition price reflects a net initial yield of 7.1% and a
capital value of GBP70 per sq ft. The estate offers several asset
management and development opportunities to help drive future
income. Located in a densely populated urban area with strong
market dynamics, the estate currently generates a total annual
passing rent of GBP561,115 p.a., equating to a low average rent of
GBP5.31 per sq ft.
This purchase means that Stenprop has completed 14 separate UK
MLI acquisitions this financial year, with an aggregate purchase
price before costs of GBP91.5 million.
The completion of these three transactions takes Stenprop's
portfolio to over 73% MLI based on September 2020 valuations.
Following the completion of the sale of Hermann Quartier (which was
announced on 29 December 2020), the percentage of UK MLI within the
Company's portfolio will rise to over 75%, based on September 2020
valuations.
Paul Arenson, CEO at Stenprop, commented: "To have undertaken
over GBP90 million of acquisitions and EUR122 million of sales
(including Hermann Quartier) over the last 12 months is a
significant achievement for the Company, which has enabled us to
meet the purchase and disposal targets we set ourselves at the
beginning of the financial year. This is a particularly strong
performance when one considers that the period coincided with the
advent of the Covid-19 pandemic and the first of several lockdowns
in both the UK and Germany. Our confidence to recommence our UK MLI
investment programme, after initially freezing acquisitions and
focusing on cash preservation during the first quarter of the
pandemic, was boosted by our ability to get early visibility of
increasing tenant enquiry levels from our digital marketing
platform and to transact leases online. It soon became clear that
the lock down had led many businesses to seek online solutions,
which increased or altered their space requirements and drove
tenant demand for MLI units.
"We remain confident of meeting our target to become a 100%
focused MLI business by this time next year and look forward to
setting out our post-transition vision for Stenprop when we
announce our annual results in June."
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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