(Alliance News) - Property firm Stenprop Ltd on Friday said it saw a rise in average rental rates in the third quarter, while it also added GBP24 million worth of property to its portfolio.
In the three months to September 30, Stenprop completed 22 new lettings and 9 lease renewals, securing an extra contractual income of GBP648,142 over 104,633 square feet.
The average rent on its multi-let industrial property portfolio now stands at GBP5.14 per square foot, up marginally from GBP5.08 per square foot in the second quarter.
Stenprop said: "The most significant transactions completed were a letting of 27,000 square feet at Compass Industrial Park in Liverpool on a five-year term with three months' rent free, and a letting of 21,000 square feet at Eurolink 31 in Wakefield for a 10-year term with three months' rent free."
During the quarter, London and Johannesburg-listed Stenprop acquired eight multi-let industrial properties for GBP23.9 million.
The properties comprise of 317,923 square feet of space, with an average occupancy rate of 92%, adding GBP1.6 million in rental income.
On its non-multi-let industrial portfolio, Stenprop completed six lettings, totalling 34,421 square feet, adding GBP380,655 to annual rent.
Chief Executive Paul Arenson said: "The multi-let industrial occupational market remains strong with demand outstripping supply. Lease incentives remain limited and we are realising significant rental uplifts when leases are renewed.
"We have also had a good quarter of individual multi-let industrial acquisitions after an unusually quiet start in the first quarter of the financial year. There was marginally less competition in the market over the period, largely as a result of the UK's political instability. Over the quarter we commenced a substantial upgrade of our financial and customer engagement systems, which we expect will deliver material cost and efficiency gains in due course, as well as supporting our serviced-industrial business plan."
Shares in Stenprop were 1.9% lower in Johannesburg on Friday morning at ZAR21.00. In London, the stock was untraded, last quoted at 110.00 pence.
By Eric Cunha; ericcunha@alliancenews.com
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