Acquisition of multi-let industrial properties

RNS Number : 6850N

Stenprop Limited

26 September 2019

 

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 £4.9 MILLION

26 September 2019

Stenprop, the UK multi-let industrial property company, has acquired eight fully-let industrial units at two estates in Somerset and Cambridgeshire for an aggregate price of £4.9 million.

The acquisitions comprise units 6-9 at Dunball Industrial Estate in Bridgwater, Somerset, and units 1-4 Block B at St Peter's Industrial Park in Huntingdon, Cambridgeshire.

The four units at Dunball Industrial Estate were acquired from two private investors for £2 million, reflecting a net initial yield of 7.1%. They total 26,465 sq ft and produce annual passing rent of £151,220, which equates to an average rent of £5.71/sq ft. Stenprop now owns the entire Dunball estate, having acquired the other half in October 2018.

The four units at St Peter's Industrial Park were also acquired from a private investor for £2.9 million, reflecting a net initial yield of 7.5%. They total 44,652 sq ft and produce annual passing rent of £230,585, which equates to an average rent of £5.16/sq ft.

Will Lutton, Stenprop's Head of Investment, said: "These properties are strategically located in the dominant industrial locations in their respective towns with good access to the national road network.  We are especially pleased to have acquired the rest of Dunball Industrial Estate, which enables us to realise significant marriage value, having acquired the other half of the estate last year. These estates are well positioned to provide consistently high levels of occupancy and sustainable rental growth through our Industrials operating platform".  

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 44.2% 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                                                                                                            [phone]

Paul Arenson

Julian Carey       

Numis Securities Limited (Financial Adviser)                                                           [phone]

Hugh Jonathan

Vicki Paine         

Tavistock (PR Adviser)                                                                                                   [phone]

James Whitmore

James Verstringhe

Java Capital Trustees and Sponsors Proprietary Limited                                       [phone]

(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.

 

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