18 Oct 2019 07:00
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop")
ACQUISITION OF MULTI-LET INDUSTRIAL ESTATES FOR £7.1 MILLION
18 October 2019
Stenprop, the UK multi-let industrial property company, has acquired two industrial estates in Glasgow and Wolverhampton in separate transactions for £7.1 million.
Western Campus at Strathclyde Business Park, Bellshill, Glasgow, has been acquired from Central Assets LLP for £4.6 million, which reflects a net initial yield of 6.8%, and Merryhills Enterprise Park in Wolverhampton has been acquired from two private investors for £2.5 million, reflecting a net initial yield of 6.7%.
Western Campus, which was built in 2016, totals 44,234 sq ft across 15 industrial units and is currently 75% let. The total annual passing rent of £333,454, which includes rental guarantees on the two of the three vacant units, equates to a rent of £7.98/sq ft. Stenprop was advised by Colliers and Central Assets LLP by Ryden.
Merryhills Enterprise Park totals 37,617 sq ft, comprising 32,337 sq ft of industrial accommodation in 14 units and 5,280 sq ft of office accommodation in one building with six self-contained suites. The estate is currently 91% let and the total annual passing rent of £179,150 equates to a rent of £4.98/sq ft on the industrial space and £7.28/sq ft on the office space. Stenprop was advised by Ereira Mendoza and the vendors by Towler Shaw Roberts.
Julian Carey, Stenprop's Executive Property Director, said: "Both Western Campus and Merryhills Enterprise Park are modern, purpose-built industrial estates located in densely-populated areas with strong demand-supply characteristics. We believe both provide an excellent opportunity to add value and grow income using our Industrials operating platform by delivering an excellent customer experience and leasing the vacant space".
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 the acquisitions, MLI assets account for 44.9% of Stenprop's portfolio* and the LTV of the portfolio is 41.8%**. 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.
* MLI % is calculated based upon the March 2019 valuations, adjusted for subsequent acquisitions and disposals.
** LTV is calculated by way of gross debt divided by gross assets.
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.