(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
("Stenprop" or the "Company")
ACQUISITION OF MULTI-LET INDUSTRIAL ESTATE
12 March 2019
Stenprop, the UK multi-let industrial property company, has acquired Gainsborough Trading Estate, an industrial estate in Stourbridge, near Birmingham, in an off-market transaction from a private investor for £6.2 million, which reflects a net initial yield of 9.1%.
Gainsborough Trading Estate in Rufford Road has 37 units, totalling 162,142 sq ft, of which just one is vacant. The total annual passing rent of £604,000, which includes income from solar panels installed on some of the units, equates to a low average rent of £3.17/sq ft.
Julian Carey, Stenprop's Executive Property Director, said: "This acquisition increases our multi-let industrial portfolio to more than £250 million and around 4 million sq ft. This estate provides a mix of small industrial units of different ages and specifications in a strong location. We have long been fans of investing in and around Birmingham, and the excellent demand-supply dynamics in the area are clear to see from the excellent letting history at Gainsborough Trading Estate. We are excited about rolling our Industrials operating platform out in Stourbridge and hope to acquire more estates in the area on the back of it".
Stenprop's strategic objective is to deliver sustainable, growing income to shareholders which 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 of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.
Following the acquisition of Gainsborough Trading Estate, MLI assets account for 41% of Stenprop's portfolio. MLI assets are expected to comprise approximately 60% 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 3918 6600
Numis Securities Limited (Financial Adviser) 44(0)20 7260 1000
Tavistock (PR Adviser) 44(0)20 7920 3150
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.