Stenprop boosts UK industrial portfolio

print

Stenprop boosts UK industrial portfolio

Published Date: 2019-03-13 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Stenprop boosts UK industrial portfolio

The industrial property company has increased its multi-let industrial portfolio to more than £250 million with the addition of Gainsborough Trading Estate.

Stenprop has bought an industrial estate near Birmingham in the UK in a deal that has increased its multi-let industrial (MLI) portfolio to more than £250 million and around 4 million square feet.

The industrial property company is paying £6.2 million for Gainsborough Trading Estate in Stourbridge in an off-market transaction with a private investor. It said the transaction reflected a net initial yield of 9.1%.

The estate includes a mix of small industrial units of different ages and specifications in a strong location. Stenprop said it planned to roll out its Industrials operating platform in the area and hoped to acquire more local estates on the back of it.

Stenprop's strategic objective is to deliver sustainable, growing income to shareholders. It believes it can achieve this by becoming a specialised UK MLI property company. It plans to sell all of its non-MLI assets over the next few years and use the sale proceeds to build a focused UK MLI business. Following the acquisition of Gainsborough Trading Estate, MLI assets account for 41% of Stenprop's portfolio. It expects to increase this to 60% by the end of March 2020.

Its shares gained 0.5% to R21.50 yesterday.





Similar Stories