Stenprop buys three more industrial estates – Stenprop has acquired three multi-let estates in Edinburgh, Cardiff and Wigan for a total consideration of £11.82m.
The 81,495 sq ft estate in Wentloog, Cardiff has been acquired for £6.25m, reflecting a net initial yield (“NIY”) of 6.3%, in an off-market transaction. It currently generates a total annual passing rent of £417,611, equating to an average rent of £5.04 per sq ft on occupied units. The 13-unit, modern estate benefits from its prime location four miles from the city centre and is occupied by a mix of national and international occupiers, including FedEx and National Grid. The estate forms part of the wider Capital Business Park estate, the freehold of which is owned by Stenprop, thus providing the company an opportunity to release significant marriage value and further asset management opportunities.
Stenprop has also acquired R6 Industrial Estate in Newbridge for £3.9 million, reflecting a NIY of 6.4%. The property complements Stenprop’s two existing estates in Edinburgh and gives the company further critical mass in a market characterised by a shortage of supply which is underpinning vacancy rates below 4%. The recently refurbished 31,860 sq ft estate generates an annual passing rent of £264,510, equating to an average rent of £8.14 per sq ft on occupied units.
The final transaction is the purchase of Otterwood Square in Wigan for £1.67 million, reflecting a NIY of 6.6%. The 18,867 sq ft property comprises 12 units, generating a current passing rent of £117,000, equating to an average rent of £6.03 per sq ft on occupied units. It sits within Martland Mill Industrial Estate, Wigan’s most established industrial park, which is less than a mile from the M6 motorway.
As a result of these acquisitions, Stenprop will have invested £66m since 1 April 2020 and the multi-let industrial portfolio now accounts for 64% of Stenprop’s total assets, up from 58% at the start of the year.
STP : Stenprop buys three more industrial estates