Stenprop Limited, listed on the JSE’s Main Board and the Bermuda Stock Exchange, today announced the appointment of Numis Securities Limited (‘Numis’) as the Company’s broker.
Numis will be the financial adviser on the proposed move from the Bermuda stock Exchange to the Specialist Funds Segment of the London Stock Exchange.
In the current environment of constrained supply, occupier demand for multi-let industrial (“MLI”) space is growing as the impact of technology and the internet drives change in the way people work, shop and interact. In early 2017, Stenprop identified the UK MLI sector as one likely to deliver long-term growth in sustainable earnings and in June 2017 acquired the industrials.co.uk multi-let industrial portfolio as well as management platform, C2 Capital, for a total consideration of £130.5 million.
Paul Arenson, CEO of Stenprop commented: "The strategic decision to focus on the MLI sector provided us with the potential to fulfil our objective of delivering sustainable growth in earnings over time to our shareholders. With Julian and his team that joined Stenprop, we believe we are well positioned to establish Stenprop as the leading MLI business in the UK.
"Over the next two years, we intend to sell approximately £460 million of our non-MLI assets and to acquire £220 million of MLI assets. The balance of the proceeds from the sale of non-MLI assets will be used to reduce overall leverage over that period to below 40% LTV."
Having embarked on this strategic journey, Stenprop believes it is opportune to migrate its jurisdiction of incorporation from Bermuda to Guernsey, convert to a UK REIT and move its listing on the Bermuda Stock Exchange to the London Stock Exchange. It will retain its primary listing on the Johannesburg Stock Exchange.
"The LSE listing will not only enable a wider array of international and UK investors to access the shares of the company, but should also improve liquidity in the Company’s shares and access to equity capital, both of which will be beneficial to the Company as well as shareholders. The LSE listing will also provide us with the further benefit of a listing in the same geographical jurisdiction as the majority of our assets.
"The appointment of Numis Securities Limited to act as our Company's broker is an important step in reaching this milestone. We are excited about working with Numis on the proposed move from the Bermuda Stock Exchange to the Specialist Funds Segment of the London Stock Exchange, which is expected to occur following the publication of our Annual Results in the first half of June 2018," Arenson concluded.