A major UK-based industrial company has today announced that it had exceeded over five million sq ft in portfolio space following a recent double acquisition.
Stenprop, one of the UK’s leading multi-let industrial (MLI) property firms, have made two further acquisitions in Glasgow and Stoke-on-Trent, pushing their total portfolio to over five million sq ft.
The firms’ recent purchase features 18 high-quality units and was sold separately for a total consideration of £11.1 million, reflecting a blended net initial yield of 6.5%.
Following these acquisitions, Stenprop’s MLI portfolio now totals more than five million square feet across 1,343 units on 75 estates and represents 61% of Stenprop’s portfolio, based on asset values at 31 March 2020.
Commenting on the landmark figure, Julian Carey, Managing Director of Stenprop, said: “Passing five million square feet of MLI is a major milestone for Stenprop. Having made the strategic decision to transition the portfolio towards 100% UK MLI based on our belief that structural changes taking place in the UK would underpin warehouse occupier demand, we remain steadfast in our belief in the sector’s future prospects and our ability to translate this into attractive shareholder returns.”
Stenprop acquired the Excelsior Industrial Estate on the in Glasgow for £5.2 million from CBRE GI.
Located less than one mile from Glasgow City Centre, the 10-unit estate benefits from excellent connectivity and generates a total annual rent of £350,133 (avg. £6.17 per sq ft)
Stenprop’s second transaction was the Tunstall Trade Park for £5.9 million, from Clowes Developments. Located in Tunstall just outside Stoke-on-Trent, the estate features eight units totalling 56,500 sq ft and is currently 100% occupied by a diverse tenant base including trade counters, self-storage and hi-tech manufacturing.
According to information released by Stenprop this morning, the estate has a passing rent of £392,541, equating to an average of rent of £6.95 per sq ft.
Since the start of the Coronavirus pandemic, Stenprop has made five acquisitions totalling over 470,000 sq ft of MLI property for a combined value of £39.95 million.
Highlighting the achievements, Will Lutton, Head of Investment at Stenprop, commented: “Despite the ongoing macro-economic uncertainty, these two latest acquisitions demonstrate our ability to source attractive investment opportunities, both on and off market, in locations underpinned by favourable demand supply dynamics. Leveraging our local market expertise and strong relationships, the well-let assets enhance the existing portfolio.”