UK industrial specialist Stenprop has provided an update on rent collection during the covid-19 pandemic.
The company, which is in the process of converting its portfolio to be fully focused on UK multi-let industrial assets, said it had received 73% of rents, as at 15 April 2020, for the current quarter and the month of April.
The rent collection is broken down as follows:
- 79% of all rent invoiced was for the quarter commencing 25 March and ending 24 June 2020, of which 77% was paid by 15 April 2020; and
- 21% of all rent invoiced was for the month of April 2020, of which 56% was paid by 15 April 2020.
The group said it was engaging with tenants on an individual basis, particularly those experiencing cash flow difficulties as a result of the lockdown measures.
Despite the uncertainty in the market, Stenprop has continued to receive letting enquiries through its online digital marketing platform, albeit at a much reduced level. However, it said the enquiries it has received are typically urgent requirements with a higher rate of conversion into lettings.
Since 16 March 2020, it has completed 16 new lettings, aggregating to £474,000 per annum of new headline rent over 112,500 sq ft of space, a number of which have been executed entirely digitally through its existing online leasing process.
Stenprop has, for a number of years, been focused on implementing technology solutions across its business and it seems this is proving effective in the current climate. Stenprop may not have envisaged its digital-first leasing strategy being stress tested in such a drastic scenario, but its efforts seem to be paying off. Looking long-term, the leasing technology is likely to bring cost efficiencies and the user-friendliness of the system is likely to lead to higher levels of demand.
STP : Stenprop collects 73% of rent during covid-19