6 Aug 2020 07:00
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
6 August 2020
STENPROP ACQUIRES 73,000 SQ FT GLASGOW INDUSTRIAL ESTATE AS IT CONTINUES ITS TRANSITION TOWARDS BEING A 100% MULIT-LET INDUSTRIAL BUSINESS
Stenprop, the UK multi-let industrial ("MLI") property company, announces that it has acquired St Andrews Industrial Estate, a 73,248 sq ft MLI estate of nine high quality warehouse units near Glasgow City Centre. The £5.5 million acquisition price reflects a net initial yield of 7.3% and a capital value of £75 per sq ft.
Located on the south side of Glasgow, the estate benefits from its proximity to the city centre as well as excellent arterial connectivity, with both the M8 and M74 within 1.5 miles.
Of the nine modern industrial units, seven are currently occupied by a diverse range of tenants including storage, trade counter and manufacturing uses, accounting for 85% of the gross lettable area and delivering a total annual passing rent of £428,936, equating to an average rent of £5.85 per sq ft.
The acquisition marks a further step forward in the Company achieving its goal of becoming a 100% MLI business by 2022 and is the Company's third MLI acquisition to complete since the start of the Coronavirus pandemic. Earlier this month, Stenprop completed the purchase of Bowthorpe Park Industrial Estate in Norwich, UK for £19.6 million, reflecting a net initial yield of 6.35%. As a result of these acquisitions, MLI assets now constitute 60% of Stenprop's portfolio, based on asset values at 31 March 2020.^
Will Lutton, Head of Investment at Stenprop, commented:
"St Andrew's Industrial Estate is the latest example of our ability to source attractive investment opportunities in locations underpinned by favourable demand supply dynamics. Our knowledge of the Glasgow market coupled with the vacancy provides a compelling opportunity to capture the estate's reversionary potential and improve the rental tone, leveraging our increasingly relevant and proprietary leasing platform, industrials.co.uk.
"Current indications are that the strong occupational demand for urban warehouse space that we are seeing, led by e-commerce penetration, is set to continue. This acquisition maintains our transactions momentum since the Coronavirus pandemic and is another step forward in pivoting our entire portfolio towards the MLI sector."
This announcement is voluntary and for information purposes only.
^The percentage of MLI assets within the portfolio is expected to rise to 62% following completion of the sale of the Neucӧlln Carrée retail park in Berlin, which is expected to occur by no later than 15 January 2021.
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 Trustees and Sponsors Proprietary Limited +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.