Stenprop Limited Stenprop completes GBP20.6 million Wigan acquisition (3714E)
July 07 2021 - 1:00AM
UK Regulatory
TIDMSTP
RNS Number : 3714E
Stenprop Limited
07 July 2021
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
7 July 2021
Stenprop continues multi-let industrial transition with GBP20.6
million Wigan acquisition
Company on track to be 100% MLI by 31 March 2022
Stenprop, the UK multi-let industrial ("MLI") owner and
operator, announces that it has acquired Bradley Hall Trading
Estate, Wigan from HIMOR (Property) Limited for GBP20.6 million,
reflecting a net initial yield of 6.43% and a capital value of
GBP67.40 per sq ft on the MLI space and GBP8.95 per sq ft on the
yard areas.
The property comprises 275,079 sq ft of terraced MLI units
ranging in size from 344 sq ft to 28,896 sq ft, and 230,062 sq ft
of income producing yard areas. It is 100% let to a diverse range
of local and national businesses and generates a total annual
passing rent of GBP1.4 million, equating to an average rent of
GBP4.61 per sq ft on the built units and GBP0.61 per sq ft on the
yard areas. This compares favourably with the average passing rent
of GBP5.46 per sq ft on Stenprop's current portfolio of 5.6 million
sq ft. 99% of rent due at the estate in H1 2021 was collected, r
eflecting the critical importance of the units to the estate's
occupiers.
The estate also offers potential for Stenprop to grow income and
value through asset management, with several lease events due in
the near term, as well as potential development opportunities to
increase the low site density.
Located in an established commercial hub five miles north of
Wigan town centre, the estate benefits from its excellent transport
connections, with both Junction 27 of the M6 and Junction 6 of the
M61 a short drive away.
The North West has been one of the strongest performing
industrial and logistics regions in recent years. The market has
been characterised by a growing demand supply imbalance, in
particular for smaller SME/MLI units ranging between 1,000 and
20,000 sq ft, which has been exacerbated by a lack of speculative
development. At GBP67 per sq ft capital value, development of new
supply is not feasible as build costs for similar units are
significantly higher.
Stenprop has continued to grow its exposure in the region, which
now totals over 1.5 million sq ft, following several recent
acquisitions, representing c 26% of its MLI portfolio.
Following this acquisition, the Company's MLI portfolio now
accounts for 75% of Stenprop's total portfolio, and the Company
remains on track to be 100% MLI by the end of the current financial
year.
Will Lutton, Head of Investment at Stenprop, commented: "
Located in one of the best performing industrial regions of the UK,
this acquisition fits well with our strategy of acquiring assets
with strong day one income and the opportunity to add value using
our management platform. We have already identified a range of
asset management opportunities at the Bradley Hall Estate which we
are confident will enable us to increase the rents significantly
over time. The granular tenant base and smaller unit sizes are well
suited for the strength of our Industrials Hive operating platform
and our Customer Engagement Manager and Smart Lease models."
Stenprop was represented by B8 Real Estate on the
transaction.
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
Justin Bell
FTI Consulting +44 (0)20 3 727 1000
Richard Sunderland
stenprop@fticonsulting.com
Richard Gotla
Indraneel Bose
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 stenprop.com.
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