Stenprop has acquired two multi-let industrial (MLI) estates for £14m, as it continues its transition into a fully focused UK MLI landlord.
Together the two estates, in Durham and West Bromwich, comprise 58 units and produce just over £1m of annual rent.
The largest of the two is the Mandale Business Park, located on the outskirts of Durham, which was acquired for £11.2m. It comprises 37 units, covering 136,000 sq ft and is almost 100% occupied by 31 tenants. The property generates a total annual passing rent of £793,374 equating to an average rent of £5.83 per sq ft.
The second transaction was the purchase of Phoenix Industrial Estate in West Bromwich for £2.8m. The site extends to 21 units totalling 46,718 sq ft and is 100% occupied off a passing rent of £211,460, equating to an average rent of £4.53 per sq ft.
The two acquisitions brings Stenprop’s dealings since the start of the COVID-19 pandemic to seven MLI acquisitions of over 660,000 sq ft, for a combined value of £53.19m, adding more than £3.5m to the annual rent roll and taking the portfolio past five million square feet of MLI. MLI assets now constitute 64% of Stenprop’s total property portfolio, and the company said it is on track to be 100% MLI by the end of 2022.
STP : Stenprop continues portfolio transition with £14m buys