14 Mar 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")
COMPLETION OF DISPOSAL OF EUSTON HOUSE IN LONDON FOR £95 MILLION
14 March 2019
Further to the announcement made by the Company on 10 January 2019, Stenprop announces that the sale of its Euston House office building in central London has now completed.
Stenprop has taken the strategic decision that its objective to deliver sustainable, growing income to shareholders 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 its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.
Paul Arenson, CEO of Stenprop commented: "This is a significant sale for Stenprop, as Euston House is a material asset representing more than 10% by value of our portfolio. Being our last remaining central London office investment, it completes our divestment from the sector. The sale took place at a value of £95 million compared with the last reported independent valuation of £80.5 million, which was used to determine the September interim NAV of 142 pence per share.
"It also ensures that Stenprop will meet its stated milestones for the financial year ending 31 March 2019 of reducing its loan-to-value ratio to below 45% and increasing the overall MLI percentage of the portfolio to above 40%. Most significantly, the sale provides cash resources to fund additional MLI purchases in the financial year ending 31 March 2020, during which period Stenprop intends to reduce leverage further to below 40% and to acquire further MLI property so that MLI represents at least 60% of our portfolio by 31 March 2020."
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson
Patsy Watson
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
Kirsty Allan
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.