(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
("Stenprop" or the "Company")
ACQUISITIONS OF TWO MULTI-LET INDUSTRIAL ESTATES
27 July 2018
Stenprop, the UK multi-let industrial property investor, has acquired two industrial estates in Southampton and Preston in separate transactions for a total of £7.45 million.
In Southampton, Stenprop has acquired Trinity Court at Brunel Road, Totton, from Catalyst Capital for £3.9 million, which reflects a net initial yield of 6.6%. Trinity Court is located within Calmore Industrial Estate and comprises 12 units, totalling 36,790 sq ft. It is fully let and produces a total annual passing rent of £273,796, which equates to an average rent of £7.44/sq ft.
In Preston, Stenprop has acquired Carnfield Place at Walton Summit in an off-market transaction from Dixon Group for £3.55 million, which reflects a net initial yield of 7.1%. Carnfield Place comprises eight units, totalling 59,505 sq ft. It is fully let and produces a total annual passing rent of £270,600, which equates to an average rent of £4.55/sq ft.
Julian Carey, Executive Property Director of Stenprop, said: "Both estates were acquired at well below replacement cost. Trinity Court is located in a region with very strong demand-supply dynamics, where we currently have no exposure. It attracts a wide range of occupiers and provides an opportunity for future rental growth along with a number of active asset management opportunities.
"Carnfield Place is a modern estate in a strong strategic location close to the motorway. The passing rents are low, given the high quality of the units, and the estate benefits from large yards and longstanding tenants".
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 acquisitions of Trinity Court and Carnfield Place, MLI assets account for 26% 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.