Multi-let industrial-focused Stenprop Limited (LSE:STP, JSE:STP) have acquired The Excelsior Industrial Estate in Glasgow from CBRE Global Value Investors for £5.2 million. In a related transaction, Stenprop also acquired Tunstall Trade Park in Stoke-on-Trent from Clowes Developments for £5.9 million.
The total of £11.1 million for the two transactions equates to a blended NIY of 6.5% and increases Stenprop’s multi-let industrial portfolio to over 5,000,000 sq/ft across 1,343 units on 75 estates.
Excelsior Industrial Estate is centrally located in Glasgow and comprises of 10 modern units. Nine of the units are currently occupied by a diverse range of customers including trade occupiers and a cash and carry.
The Tunstall Trade Park estate comprises of eight high-quality modern units totalling 56,500 sq ft and is 100% occupied by a diverse customer base including trade counters, self-storage, and hi-tech manufacturing.
Stenprop are dual-listed on the London Stock Exchange (LSE) and the Johannesburg Stock Exchange (JSE) and headquartered in London. Prior to the recent transactions Stenprop’s total portfolio included 89 assets valued at £532.6 million generating gross annual rents of £37.9 million.
At present 61.2% of the portfolio are industrial units with the balance made up of retail, offices and nursing homes. However the trust’s long term goal is to become a 100% focused UK multi-let industrial business over the next two years.
Commenting on the two new acquisitions, 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.”