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Sunday, May 16, 2021
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Stenprop acquires industrial estate

Stenprop, the UK multi-let industrial property investor, has acquired Estuary Court – an industrial estate located in Newport, South Wales – from Storage Giant for £3.1million

Stenprop, the UK multi-let industrial property investor, has acquired Estuary Court – an industrial estate located in Newport, South Wales – from Storage Giant for £3.1million, which reflected a net initial yield of 7.6percent.

The group said Estuary Court comprised 20 units of industrial and trade counter space, and was fully let to 17 tenants.

The group said the weighted average unexpired lease term was 4.3years to lease expiries and 3.5years to lease breaks.

Executive property director of Stenprop, Julian Carey said Estuary Court was an excellent addition to the group’s portfolio.

Carey said it is well placed to capitalise on growing demand for industrial accommodation as a result of the removal of bridge tolls across the River Severn later this year.

Stenprop said that it had taken the strategic decision that its objective to deliver sustainable, growing income to shareholders was best achieved by becoming a specialised UK multi-let industrial (MLI) property company.

The group said that 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.

It added that following the acquisition of Estuary Court, MLI assets accounted for 22.9percent of Stenprop’s portfolio.

Stenprop expects its MLI assets to comprise about 60percent to 65percent of Stenprop’s total portfolio of properties by March 31, 2020.

The group added this equated to a historic dividend yield of 7percent on the share price of £1.14 at June 4 or 5.7percent on the diluted European Public Real Estate Association net asset value of £1.41 at the end of March.

The group made a total investment of £147.8m in MLI assets at the end of March, including the £130.5m strategic acquisition of the industrials.co.uk portfolio and management platform.

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