(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
("Stenprop" or the "Company")
ACQUISITION OF MULTI-LET INDUSTRIAL ESTATE
13 July 2018
Stenprop, the UK multi-let industrial property investor, has acquired Estuary Court, an industrial estate in Newport, South Wales, from Storage Giant for £3.1 million, which reflects a net initial yield of 7.6%.
Estuary Court is a modern estate, located in the established industrial location of Queensway Meadows. It comprises 20 units, totalling 34,980 sq ft of industrial and trade counter space, and is fully let to 17 tenants, including Clark Foods, Thrifty, Europcar, Rearo Laminates and Halo Foods.
The weighted average unexpired lease term is 4.3 years to lease expiries and 3.5 years to lease breaks. The total annual passing rent of £251,493 equates to an average rent of £6.87/sq ft.
Julian Carey, Executive Property Director of Stenprop, said: "Estuary Court is an excellent addition to our portfolio. It is well placed to capitalise on growing demand for industrial accommodation as a result of the removal of bridge tolls across the River Severn later this year".
Stenprop has taken the strategic decision that its objective to deliver sustainable, growing income to shareholders is best achieved by becoming a specialised UK multi-let industrial (MLI) property company. This strategic repositioning means that Stenprop intends, over the next few years, to sell all, or substantially all, of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.
Following the acquisition of Estuary Court, MLI assets account for 22.9% of Stenprop's portfolio. MLI assets are expected to comprise approximately 60% to 65% of Stenprop's total portfolio of properties by 31 March 2020.
This announcement is voluntary and for information purposes only.
For further information:
Stenprop Limited 44(0)20 7079 6600
Numis Securities Limited (Financial Adviser) 44(0)20 7260 1000
Tavistock (PR Adviser) 44(0)20 7920 3150
Instinctif Partners (SA Investor Relations and PR Adviser) 27 (0)11 447 3030
Java Capital Trustees and Sponsors Proprietary Limited 27 (0)11 722 3050
Stenprop is a Guernsey-registered UK REIT. 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.