Stenprop announces significant rental growth
Stenprop has announced substantial rental growth in a trading update released to the market today. In the three months ending 30th June 2019 the group completed 29 new lettings and 17 lease renewals with avaerge rental uplifts of 24% and 16% respectively above the previous passing rent. That said, the average rent on the Multi Lease Industrial portfolio is now £5.08/sq ft, which is still 7.7% less than the average estimated rental value of the portfolio of £5.50/sq ft.
Stenprop is transitioning its portfolio from a diversified, pan-European investor into a focused UK Multi Lease Industrial (MLI) company, with the aim of becoming the UK’s leading MLI business. Stenprop has set out a transition plan which involves transitioning the portfolio to at least 60% MLI by March 2020.
Paul Arenson, CEO, said:
“Our MLI portfolio continues to deliver growth, with new rents consistently ahead of previous passing rents. Tenant demand for MLI units across the UK continues to grow and supply remains constrained.
“During the quarter we made no new acquisitions. We continue to be disciplined in our approach and will only buy if opportunities meet our defined acquisition and return criteria. We remain confident that suitable opportunities will unfold over the coming months. The investment market has been more muted in the first half of the year, but we have recently seen a noticeable increase in better-quality opportunities coming to market.”
Stenprop’s Multi-Let Industrial Strategy – Video Interview