(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
("Stenprop" or the "Company")
ACQUISITION OF MULTI-LET INDUSTRIAL ESTATE
6 August 2018
Stenprop, the UK multi-let industrial property investor, has acquired the Lombard Centre, an industrial estate in Aberdeen, in an off-market transaction from Mayfair Capital for £3.25 million, which reflects a net initial yield of 8.15%.
The Lombard Centre is a modern estate, located next to Aberdeen International Airport. It comprises 10 units, totalling 32,622 sq ft of industrial space and is let to six tenants, including Mitie, J&S Limited, and Pirtek. There is one vacant unit.
The weighted average unexpired lease term is 1.9 years to lease expiries and 1.7 years to lease breaks. The total annual passing rent of £280,902 equates to an average rent of £9.30/sq ft.
Julian Carey, Executive Property Director of Stenprop, said: "We have acquired another high-quality, purpose-built estate as part of our transition into a focused multi-let industrial company. The Lombard Centre is located adjacent to Aberdeen's international airport and heliport in a prime industrial area, with healthy industrial demand and limited supply. Many of the tenants are long standing on the estate and we look forward to working with them".
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 the Lombard Centre, MLI assets account for 26.9% 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.