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Stenprop continues multi-let industrial transition with series of deals

Stenprop, the UK multi-let industrial (MLI) property company, has completed several transactions which further progresses its strategic goal of becoming a fully focussed MLI REIT.

It has acquired the Headlands Trading Estate in Swindon for £7.4m; disposed of the Bikemax portfolio of five German retail warehouse units for €27m; and completed the sale of the Victoria Centre retail property in Berlin for €37.45m.

These three transactions take Stenprop’s portfolio to over 73% MLI, based on September 2020 valuations. This will increase to 75% on completion of the sale of Hermann Quartier (which was announced on 29 December 2020).

Headlands Trading Estate provides 106,000 sq ft of MLI space across 19 units and is fully let to a diverse occupier base. The acquisition price reflects a net initial yield of 7.1% and a capital value of £70 per sq ft.

The estate offers several asset management and development opportunities that should increase future income. The estate currently generates a total annual passing rent of £561,115, equating to a low average rent of £5.31 per sq ft.

This purchase means that Stenprop has completed 14 separate UK MLI acquisitions this financial year, with an aggregate purchase price before costs of £91.5m.

Paul Arenson, chief executive, said: “To have undertaken over £90m of acquisitions and €122m of sales (including Hermann Quartier) over the last 12 months is a significant achievement for the company, which has enabled us to meet the purchase and disposal targets we set ourselves at the beginning of the financial year.

“This is a particularly strong performance when one considers that the period coincided with the advent of the COVID-19 pandemic and the first of several lockdowns in both the UK and Germany. Our confidence to recommence our UK MLI investment programme, after initially freezing acquisitions and focusing on cash preservation during the first quarter of the pandemic, was boosted by our ability to get early visibility of increasing tenant enquiry levels from our digital marketing platform and to transact leases online.

“It soon became clear that the lockdown had led many businesses to seek online solutions, which increased or altered their space requirements and drove tenant demand for MLI units.

“We remain confident of meeting our target to become a 100% focused MLI business by this time next year and look forward to setting out our post-transition vision for Stenprop when we announce our annual results in June.”

STP : Stenprop continues multi-let industrial transition with series of deals

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