Stenprop has acquired eight fully-let industrial units at two estates in Somerset and Cambridgeshire for an aggregate price of £4.9 million.
The acquisitions comprise units 6-9 at Dunball Industrial Estate in Bridgwater, Somerset, and units 1-4 Block B at St Peter’s Industrial Park in Huntingdon, Cambridgeshire. The four units at Dunball Industrial Estate were acquired from two private investors for £2 million, reflecting a net initial yield of 7.1%. They total 26,465 square feet and produce annual passing rent of £151,220, which equates to an average rent of £5.71/square foot.
Stenprop now owns the entire Dunball estate, having acquired the other half in October 2018. Stenprop was advised by Finn & Co. The four units at St Peter’s Industrial Park were also acquired from a private investor for £2.9 million, reflecting a net initial yield of 7.5%. They total 44,652 square feet and produce annual passing rent of £230,585, which equates to an average rent of £5.16/square foot. Stenprop was advised by Aston Rose.
Will Lutton, Stenprop’s Head of Investment, said: “These properties are strategically located in the dominant industrial locations in their respective towns with good access to the national road network. We are especially pleased to have acquired the rest of Dunball Industrial Estate, which enables us to realise significant marriage value, having acquired the other half of the estate last year. These estates are well positioned to provide consistently high levels of occupancy and sustainable rental growth through our Industrials operating platform”.
Stenprop’s strategic objective is to deliver sustainable, growing income to shareholders which 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 of its non-multi-let industrial assets and to utilise the sale proceeds to build a focused UK multi-let industrial business.
Following these latest acquisitions, multi-let industrial assets account for 44.2% of Stenprop’s portfolio. Multi-let industrial assets are expected to comprise approximately 60% of Stenprop’s total portfolio of properties by 31 March 2020.