LONDON (Alliance News) - Stenprop Ltd agreed to the sale of its Euston House office building in London on Thursday for GBP66.0 million.
The building is valued at GBP95 million but after sales costs, rental top-ups and the repayment of external debt, Stenprop will receive GBP66.0 million in cash proceeds.
Stenprop - an investment firm in the multi-let industrial market - said the buyer is a wholly-owned subsidiary of Paris-listed investment company Eurazeo.
"The sale of Euston House is the last of our central London offices to be sold and completes a sales programme of more than GBP216.6 million of central London offices," said Chief Executive Officer Paul Arenson.
Stenprop said the net proceeds will be used partly to reduce debt and partly to acquire additional multi-let industrial assets in line with its transition strategy into a 100% UK multi-let industrial business.
Stenprop said the sale of Euston House is in line with its strategy of moving its portfolio to 100% multi-let industrial assets. Completion of the sale is expected by April 5.
Arenson added: "Following completion of the sale and before any further multi-let industrial acquisitions, the multi-let industrial component of our portfolio will represent more than 40% of our total assets and our overall debt will reduce to a loan-to-value ratio of less than 45%."
"This sale represents another important step in the implementation of our two-year strategic transition plan communicated to shareholders, which envisages being at 65% multi-let industrial by March 2020 with no more than 40% overall leverage."
Shares in Stenprop closed down 0.5% Thursday at 108.50 pence each.