Multi-let industrial REIT, Stenprop, has exchanged contracts for and completed the sale of Trafalgar Court, its Guernsey office building, to ARC Global Holdings for £55 million.
This disposal furthers Stenprop’s strategy to become a 100% UK multi-let industrial business by March 2022, increasing its multi-let industrial portfolio from 83% to 92% of its total portfolio based on asset valuations as at the 31st of March 2021.
Located in St Peter Port, Guernsey, Trafalgar Court’s gross lettable space totals 10 564m2 with a weighted average rental of £419.2 per square meter.
“The disposal of Trafalgar Court is an important milestone for Stenprop. We remain on track to transition to a 100% focused UK multi-let industrial business by March 2022. The proceeds will be deployed into attractive multi-let opportunities in the UK and takes the percentage of multi-let industrial assets in our portfolio to over 90%. We have approximately £45 million of non-multi-let industrial assets left to sell and we look forward to announcing further acquisitions and disposals. The sale of Trafalgar Court and the repayment of the associated short-term debt also paves the way for our proposed move to the Premium Segment of the Main Market of the London Stock Exchange between now and the 31st of March 2022” commented CEO of Stenprop, Paul Arenson.
The disposal was undertaken via the sale of all the issued share capital of a special purpose vehicle wholly owned by Stenprop. The existing bank debt of c.£28 million in relation to the property was paid on completion. Net proceeds from the disposal (after the deduction of anticipated transaction costs and property taxes) are expected to be c.£25.6 million and Stenprop intends to use these proceeds to fund further multi-let industrial acquisitions.