(Alliance News) - Stenprop Ltd on Tuesday continued its multi-let industrial transition with three acquisitions totalling GBP18.4 million, or around ZAR392.3 million.
The London and Johannesburg-listed firm said it 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.
Stenprop acquired Riverside Industrial Estate for GBP10.9 million. The property comprises 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", the company said, and generates a total annual passing rent of GBP784,660
Lake Enterprise Centre in Bromborough was acquired for GBP4.2 million. he 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, which is currently fully-let with a passing rent of GBP234,000 per annum.
Investment Head Will Lutton said: "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."
Stenprop shares were up 2.2% at ZAR29.65 each in Johannesburg on Monday, and up 0.4% at 140.00 pence each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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