Stenprop: Acquires 43,500 sqft Multi Let Industrial
STENPROP TAKES ANOTHER STEP TOWARDS 100% MULTI-LET INDUSTRIAL FOCUS WITH ACQUISITION OF FOUR WAREHOUSE UNITS TOTALLING 43,500 SQFT
Represents first acquisition during Covid-19 pandemic
Stenprop, the UK multi-let industrial (“MLI”) property company, announces that it has acquired a further 43,500 sq ft of MLI property across four adjoining warehouse units in Stretton Business Park, in Burton upon Trent, Staffordshire. The £3.75 million acquisition reflects a net initial yield of 6.9% and a capital value of £86 per sq ft. The acquisition marks a further step forward in the Company achieving its goal of achieving a c.100% focus on the MLI sector by 2022 and is the Company’s first acquisition to complete since the start of the Coronavirus pandemic.
Stretton Business Park is a modern and well-located industrial estate in close proximity to Stenprop’s existing holdings in Burton upon Trent, Albion Gateway and Sovereign Business Park. The four modern units are fully occupied on leases delivering a total annual passing rent of £278,000, equating to an average rent of £6.39 per sq ft.
Will Lutton, Head of Investment at Stenprop, commented:
“Despite the challenging macroeconomic backdrop, the outlook for the multi-let industrial sector in the UK remains strong and we continue to be encouraged by the levels of demand for space across our portfolio, most notably through our Industrials.co.uk leasing platform.
“The sector is underpinned by a number of prevalent structural trends, led by e-commerce penetration, which have accelerated considerably as a result of Covid-19 lockdown. The income profile of these assets perfectly fits our strategy to grow contracted rent and is supported by the favourable local market dynamics. This acquisition is another step forward in our goal of transitioning our entire portfolio into MLI. We were close to acquiring this property prior to the Coronavirus outbreak in March 2020 and are pleased to have completed the acquisition on renegotiated terms three months later.”