Multi-let industrial (MLI) property investor Stenprop (STP) dipped 1.5% to 133p as it continued to make progress with the reshaping of its portfolio. It aims to increase its exposure to MLI to 100% by 2022.
Yesterday (21 Dec) the company announced it had agreed to sell its freehold interest in the Victoria Center shopping mall in Berlin, Germany to Art-Invest Real Estate Funds for €37.5 million.
Stenprop said the disposal price was at its 30 September book value and reflected a 19.3% premium to the 31 March book value.
Net proceeds from the sale after deduction of anticipated transaction costs, repayment of debt and property taxes were expected to be €24.1 million.
ADDING TO THE PORTFOLIO
Today it has announced the acquisition of three multi-let estates, in Edinburgh, Cardiff and Wigan, for a combined £11.8 million. The 81,495 square foot estate in Wentloog, Cardiff had been acquired for £6.3 million, reflecting a net initial yield of 6.3%, in an off-market transaction.
Stenprop also acquired R6 Industrial Estate in Newbridge for £3.9 million, reflecting a yield of 6.4%, and Otterwood Square in Wigan for £1.67 million, reflecting a yield of 6.6%.
Numis commented: ‘Following the announcement of the disposal of the non-core Victoria Centre in Berlin yesterday, these acquisitions further illustrate Stenprop’s continued progress on its transition to become 100% invested in UK Multi-Let Industrial assets by 2022. 64% of the portfolio is now in MLI and the manager continues to source acquisitions at attractive yields.
‘Given the significant headwinds of Brexit and Covid-19, we believe the team has demonstrated an impressive ability to transact in the most difficult markets, while delivering strong NAV growth in the six months to 30 September and an attractive level of dividend for shareholders.’
