20 Sep 2019 07:00
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
ACQUISITION OF MULTI-LET INDUSTRIAL PROPERTIES FOR £16.7 MILLION
20 September 2019
Stenprop, the UK multi-let industrial property company, has completed the acquisition of 100 industrial units in five separate transactions for an aggregate price of £16.7 million.
The acquisitions comprise:
- Hillfoot Industrial Estate, Sheffield
- Armthorpe Enterprise Centre, Doncaster
- Trident Business Centre, Middlesbrough
- Units 1-10, Parkway Business Centre, Deeside
- Units 1-8, Forth Industrial Estate, Edinburgh
- Unit 5, Holbrook Enterprise Park, Sheffield
The Hillfoot, Armthorpe and Trident estates were acquired as a portfolio from Westbrook Partners for £10.2 million, reflecting a net initial yield of 6.0%. They have 81 units, totalling 137,695 sq ft, of which 11% are vacant. The total annual passing rent of £642,460 equates to an average rent of £5.27/sq ft.
The 10 units at Parkway Business Centre, of which two are vacant, were acquired from M7 Real Estate for £2.1 million, reflecting a net initial yield of 7.0%. They total 31,572 sq ft and produce annual passing rent of £129,780, which equates to an average rent of £4.90/sq ft.
The eight fully-let units at Forth Industrial Estate were acquired from Granton Holdings for £4.2 million, reflecting a net initial yield of 6.6%. They total 39,922 sq ft and produce annual passing rent of £294,700, which equates to an average rent of £7.40/sq ft.
The single unit at Holbrook Enterprise Park, where the wider estate was purchased as part of the Pegasus Portfolio transaction in December 2018 was acquired for £201,500, reflecting a net initial yield of 7.65%.
Julian Carey, Stenprop's Executive Property Director, said: "These properties are all purpose-built multi-let industrial, which meet our acquisition criteria in terms of location and returns. We look forward to rolling out our Industrials operating platform on these estates. We have a number of other similar acquisitions under review, which we hope to complete in the coming months".
Stenprop's strategic objective is to deliver sustainable, growing income to shareholders which is best achieved by becoming a specialised UK multi-let industrial (MLI) property company. This strategic repositioning means that Stenprop intends, over the next few years, to sell all of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.
Following these latest acquisitions, MLI assets account for 43.9% of Stenprop's portfolio. MLI assets are expected to comprise approximately 60% of Stenprop's total portfolio of properties by 31 March 2020.
This announcement is voluntary and for information purposes only.
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson
Julian Carey
Numis Securities Limited (Financial Adviser) +44(0)20 7260 1000
Hugh Jonathan
Vicki Paine
Tavistock (PR Adviser) +44(0)20 7920 3150
James Whitmore
James Verstringhe
Java Capital Trustees and Sponsors Proprietary Limited +27 (0)11 722 3050
(JSE Sponsor)
About Stenprop:
Stenprop is a Guernsey-registered UK REIT. 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.