Stenprop has agreed a deal to sell its largest asset, Bleichenhof in Hamburg, for €160.15m as it continues its transition to a fully-focused UK multi-let industrial (MLI) owner.
The sale of the office and retail asset will see UK MLI asset rise to 56% of Stenprop’s portfolio, from 44.6%.
The Bleichenhof property makes up around 21% of Stenprop’s gross portfolio by value and generates an annual rent of around €7m.
As at 30 September 2019, the property was valued at €151.7m. Under the terms of the disposal for €160.15 million, Stenprop is required to complete the refurbishment works at the property which have been on-going since 2016, which are estimated to cost a further €8m. The transaction therefore reflects a sales price €0.45m above valuation.
Stenprop’s IFRS net asset value is expected to decrease by around €2.3m against the IFRS NAV reported at 30 September 2019.
The disposal will release net cash proceeds of around €59.6m, after transaction costs, the repayment of external debt and taxes, that Stenprop will use to acquire new UK MLI estates and repay debt.
The sale is classified as a ‘category 1’ transaction for Stenprop pursuant to the Johannesburg Stock Exchange listings requirements and requires the approval of Stenprop’s shareholders. A circular incorporating the notice of general meeting will be posted to shareholders in due course.
STP : Stenprop sells largest asset for €160.15m as part of UK industrial strategy