Stenprop Limited Acquisition of Glasgow multi-let industrial estate (2855V)
August 06 2020 - 2:00AM
UK Regulatory
TIDMSTP
RNS Number : 2855V
Stenprop Limited
06 August 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
6 August 2020
STENPROP ACQUIRES 73,000 SQ FT GLASGOW INDUSTRIAL ESTATE AS IT
CONTINUES ITS TRANSITION TOWARDS BEING A 100% MULIT-LET INDUSTRIAL
BUSINESS
Stenprop, the UK multi-let industrial ("MLI") property company,
announces that it has acquired St Andrews Industrial Estate, a
73,248 sq ft MLI estate of nine high quality warehouse units near
Glasgow City Centre. The GBP5.5 million acquisition price reflects
a net initial yield of 7.3% and a capital value of GBP75 per sq
ft.
Located on the south side of Glasgow, the estate benefits from
its proximity to the city centre as well as excellent arterial
connectivity, with both the M8 and M74 within 1.5 miles.
Of the nine modern industrial units, seven are currently
occupied by a diverse range of tenants including storage, trade
counter and manufacturing uses, accounting for 85% of the gross
lettable area and delivering a total annual passing rent of
GBP428,936, equating to an average rent of GBP5.85 per sq ft.
The acquisition marks a further step forward in the Company
achieving its goal of becoming a 100% MLI business by 2022 and is
the Company's third MLI acquisition to complete since the start of
the Coronavirus pandemic. Earlier this month, Stenprop completed
the purchase of Bowthorpe Park Industrial Estate in Norwich, UK for
GBP19.6 million, reflecting a net initial yield of 6.35%. As a
result of these acquisitions, MLI assets now constitute 60% of
Stenprop's portfolio, based on asset values at 31 March 2020.^
Will Lutton, Head of Investment at Stenprop, commented:
"St Andrew's Industrial Estate is the latest example of our
ability to source attractive investment opportunities in locations
underpinned by favourable demand supply dynamics. Our knowledge of
the Glasgow market coupled with the vacancy provides a compelling
opportunity to capture the estate's reversionary potential and
improve the rental tone, leveraging our increasingly relevant and
proprietary leasing platform, industrials.co.uk.
"Current indications are that the strong occupational demand for
urban warehouse space that we are seeing, led by e-commerce
penetration, is set to continue. This acquisition maintains our
transactions momentum since the Coronavirus pandemic and is another
step forward in pivoting our entire portfolio towards the MLI
sector."
This announcement is voluntary and for information purposes
only.
^The percentage of MLI assets within the portfolio is expected
to rise to 62% following completion of the sale of the Neuc lln
Carrée retail park in Berlin, which is expected to occur by no
later than 15 January 2021.
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson (paul.arenson@stenprop.com)
Julian Carey (julian.carey@stenprop.com)
James Beaumont (james.beaumont@stenprop.com)
Numis Securities Limited (Financial Adviser) +44(0)20 7260
1000
Hugh Jonathan
Vicki Paine
FTI Consulting (PR Adviser)
+44(0)20 3727 1000
Richard Sunderland
Richard Gotla
Neel Bose
Stenprop@fticonsulting.com
Java Capital Trustees and Sponsors Proprietary Limited +27 (0)11
722 3050
(JSE Sponsor)
About Stenprop:
Stenprop is a UK REIT listed on the LSE and the JSE. The
objective of the Company is to deliver sustainable growing income
to its investors. Stenprop's investment policy is to invest in a
diversified portfolio of UK multi-let industrial (MLI) properties
with the strategic goal of becoming the leading MLI business in the
UK. For further information, go to www.stenprop.com.
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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