Stenprop has acquired the industrial estate, Lombard Centre which is located in Aberdeen. The off-market transaction from Mayfair Capital for £3.25 million, reflects a net initial yield of 8.15%.
A modern estate, the Lombard Centre comprises of ten units, totalling 32,622 square feet of industrial space which is let to six tenants, with one vacant unit. The weighted average unexpired lease term is 1.9 years to lease expiries and 1.7 to lease breaks with a total annual passing rent of £280,902 equating to an average rent of £9.30/sq ft.
“We have acquired another high-quality, purpose-built estate as part of our transition into a focused multi-let industrial company. The Lombard Centre is located adjacent to Aberdeen’s international airport and heliport in a prime industrial area, with healthy industrial demand and limited supply. Many of the tenants are long standing on the estate and we look forward to working with them” commented Julian Carey, Executive Property Director of Stenprop.
Stenprop has taken the strategic decision that its objective to deliver sustainable, growing income to shareholders is best achieved by becoming a specialised 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 the Lombard Centre, multi-let industrial assets account for 26.9% 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.