On 10 January 2019, we announced that Stenprop had reached agreement to dispose of its Euston House office building in central London for a price valuing the property at £95 million. We are now delighted to confirm that the sale has completed.
Paul Arenson, CEO of Stenprop commented:
“This is a significant sale for Stenprop, as Euston House is a material asset representing more than 10% by value of our portfolio. Being our last remaining central London office investment, it completes our divestment from the sector. The sale took place at a value of £95 million compared with the last reported independent valuation of £80.5 million, which was used to determine the September interim NAV of 142 pence per share."
It also ensures that Stenprop will meet its stated milestones for the financial year ending 31 March 2019 of reducing its loan-to-value ratio to below 45% and increasing the overall MLI percentage of the portfolio to above 40%. Most significantly, the sale provides cash resources to fund additional MLI purchases in the financial year ending 31 March 2020, during which period Stenprop intends to reduce leverage further to below 40% and to acquire further MLI property so that MLI represents at least 60% of our portfolio by 31 March 2020.