| Fri 20 Sep 2019, 8:00 | | STENPROP LIMITED - STP : Acquisition of multi-let industrial properties for 16.7 million |
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STP : Acquisition of multi-let industrial properties for ?16.7 million:
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 PROPERTIES FOR P16.7 MILLION
20 September 2019
Stenprop, the UK multi-let industrial property company, has completed the acquisition of 100 industrial units in five
separate transactions for an aggregate price of P16.7 million.
The acquisitions comprise:
- Hillfoot Industrial Estate, Sheffield
- Armthorpe Enterprise Centre, Doncaster
- Trident Business Centre, Middlesbrough
- Units 1-10, Parkway Business Centre, Deeside
- Units 1-8, Forth Industrial Estate, Edinburgh
- Unit 5, Holbrook Enterprise Park, Sheffield
The Hillfoot, Armthorpe and Trident estates were acquired as a portfolio from Westbrook Partners for P10.2 million,
reflecting a net initial yield of 6.0%. They have 81 units, totalling 137,695 sq ft, of which 11% are vacant. The total
annual passing rent of P642,460 equates to an average rent of P5.27/sq ft.
The 10 units at Parkway Business Centre, of which two are vacant, were acquired from M7 Real Estate for P2.1 million,
reflecting a net initial yield of 7.0%. They total 31,572 sq ft and produce annual passing rent of P129,780, which
equates to an average rent of P4.90/sq ft.
The eight fully-let units at Forth Industrial Estate were acquired from Granton Holdings for P4.2 million, reflecting a
net initial yield of 6.6%. They total 39,922 sq ft and produce annual passing rent of P294,700, which equates to an
average rent of P7.40/sq ft.
The single unit at Holbrook Enterprise Park, where the wider estate was purchased as part of the Pegasus Portfolio
transaction in December 2018 was acquired for P201,500, reflecting a net initial yield of 7.65%.
Julian Carey, Stenprop's Executive Property Director, said: "These properties are all purpose-built multi-let
industrial, which meet our acquisition criteria in terms of location and returns. We look forward to rolling out our
Industrials operating platform on these estates. We have a number of other similar acquisitions under review,
which we hope to complete in the coming months".
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 these latest acquisitions, MLI assets account for 43.9% 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
Paul Arenson
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
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: 20/09/2019 08:00:00
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