We are delighted to announce that, on 2 September 2021, Stenprop simultaneously exchanged contracts for and completed the sale of Trafalgar Court, our Guernsey office building (the "Property") to ARC Global (Guernsey) Holdings Limited (the "Buyer") for a consideration which values the Property at £55 million^ (the "Disposal"). The Buyer is a wholly owned subsidiary of Global Net Lease, Inc. (NYSE: GNL), a real estate investment trust that focuses on acquiring and managing a globally diversified portfolio of commercial real estate properties.

The Disposal further progresses Stenprop's strategy to become a 100% UK MLI business by March 2022, increasing our MLI portfolio from 83% to 92% of our total portfolio based on asset valuations as at 31 March 2021*.

Totalling 10,564 sqm of gross lettable space, Trafalgar Court is located in St Peter Port, Guernsey. The weighted average rental is currently £419.2 per sqm.

Paul Arenson, CEO, commented: "The disposal of Trafalgar Court is an important milestone for Stenprop. We remain on track to transition to a 100% focused UK MLI business by March 2022.  The proceeds will be deployed into attractive MLI opportunities in the UK and takes the percentage of MLI in our portfolio to over 90%.  We have approximately £45 million of non-MLI assets left to sell and look forward to announcing further acquisitions and disposals. The sale of Trafalgar Court and the repayment of the associated short-term debt also paves the way for our proposed move to the Premium Segment of the Main Market of the London Stock Exchange between now and 31 March 2022."

The Disposal was undertaken via the sale of all the issued share capital of a special purpose vehicle (the "Property Company") wholly owned by Stenprop. The existing bank debt of c.£28 million in relation to the Property was repaid at completion. Net proceeds from the Disposal after deduction of anticipated transaction costs and property taxes are expected to be c.£25.6 million. Stenprop intends to use these proceeds to fund further MLI acquisitions in the MLI sector.

The share purchase agreement contains market standard representations, warranties and indemnities for a transaction of this size and nature.

Special thanks to acting agents, D2 Real Estate and JLL.

^ The value attributable to the Property in Stenprop's consolidated statement of financial position at 31 March 2021 was £56.15 million and was determined in accordance with Royal Institution of Chartered Surveyors standards by Chris Strathon, a director of Jones Lang LaSalle Limited who is an external valuer registered with the Royal Institution of Chartered Surveyors. The net operating profit attributable to the Property Company for the year ended 31 March 2021 was £4.45 million. This information has been extracted from Stenprop's audited results for the year ended 31 March 2021 which were prepared under International Financial Reporting Standards.

* Inclusive of the retained urban logistics assets which complement the wider MLI strategy.

Stenprop has a primary listing on the Main Board of the Johannesburg Stock Exchange and a listing on the Specialist Fund Segment of the Main Market of the London Stock Exchange. This disposal is classified as a category 2 transaction in terms of the JSE Listings Requirements. Accordingly, it is not subject to approval by shareholders.