Acquisition of multi-let industrial estate STENPROP LIMITED (Registered in Guernsey) (Registration number 64865) LSE share code: STP JSE share code: STP ISIN: GG00BFWMR296 ("Stenprop" or the "Company") ACQUISITION OF MULTI-LET INDUSTRIAL ESTATE 17 October 2018 Stenprop, the UK multi-let industrial property investor, has acquired an industrial estate in Bridgwater, Somerset, in an off-market deal from a private investor for £4.8 million, which reflects a net reversionary yield of 6.9%. Dunball Industrial Estate is a modern estate, which is strategically located just off junction 23 of the M5. Stenprop has acquired four terraced units, totalling 48,432 sq ft of industrial space. Three of the units are let to Scania, Wincanton and Astigan and one is vacant. The weighted average unexpired lease term is 2.5 years to lease expiries and 1.7 years to lease breaks. The total annual passing rent of £245,000 equates to a low average rent of £6.74/sq ft. Julian Carey, Executive Property Director of Stenprop, said: "This is an excellent addition to our portfolio in a region where we were underweight. Dunball Industrial Estate has a strong letting history, with opportunities for immediate rental growth and a strong tenant line up. The wider Bridgwater area is undergoing a period of change with the development of the nuclear power station at Hinkley Point C, which will create 25,000 jobs and increase industrial demand in the short, medium and long terms". 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 at Dunball Industrial Estate, MLI assets account for 27.3% 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 Paul Arenson Patsy Watson Julian Carey Numis Securities Limited (Financial Adviser) 44(0)20 7260 1000 Hugh Jonathan Vicki Paine Tavistock (PR Adviser) 44(0)20 7920 3150 James Whitmore James Verstringhe Kirsty Allan Instinctif Partners (SA Investor Relations and PR Adviser) 27 (0)11 447 3030 Keagile Makgoba Java Capital Trustees and Sponsors Proprietary Limited 27 (0)11 722 3050 (JSE Sponsor) About Stenprop: 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. Date: 17/10/2018 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.