Stenprop has announced the acquisition of Estuary Court (an industrial estate in Newport, South Wales) from Storage Giant for £3.1 million, reflecting a net yield of 7.6%,
A modern estate located in the established industrial area of Queensway Meadows, Estuary Court comprises of twenty units, totalling 34 980 square feet and trade counter space. It is fully let to seventeen tenants.
The weighted average unexpired lease term is 4.3 years to lease expiries and 3.5 years to lease breaks. The total annual passing rent of £251,493 equates to an average rent of £6.87 square feet.
“Estuary Court is an excellent addition to our portfolio. It is well placed to capitalise on growing demand for industrial accommodation as a result of the removal of bridge tolls across the River Severn later this year” commented Julian Carey, Executive Property Director of Stenprop.
Stenprop’s strategic decision is to deliver sustainable, growing income to shareholders which will be best achieved by becoming a specialist UK multi-let industrial property company. This strategic repositioning means that Stenprop intends, over the next few years, to sell all, or substantially all, of its non multi-let industrial assets and utilise the sale proceeds to build a focused UK multi-let industrial business.
Following the acquisition of Estuary Court, multi-let industrial assets account for 22.9% of Stenprop’s portfolio. Multi-let industrial assets are expected to comprise approximately 60% to 65% of Stenprop’s total portfolio of properties by 31 March 2020.