Stenprop continues to deliver growth

The Johannesburg Stock Exchange. File picture: Siphiwe Sibeko

The Johannesburg Stock Exchange. File picture: Siphiwe Sibeko

Published Aug 6, 2019

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CAPE TOWN - Stenprop, the UK multi-let industrial (MLI) property company, continues to deliver growth from its portfolio, with new rents consistently ahead of previous passing rents, CEO Paul Arenson said on Tuesday.

He said in a trading update for April 1, 2019 to June 30, 2019 also that tenant demand has also continued to be strong, with supply constrained.

On its (MLI) portfolio lettings, Arenson said they had completed 29 new lettings and 17 lease renewals in the period, at average rental uplifts of 24 percent and 16 percent above the previous passing rent, respectively.

The average rent on the MLI portfolio was £5.08 per square foot, was 7.7 percent below the average estimated rental value of the portfolio of £5.50 per square foot.

The vacancy rate stood at 5.5 percent,excluding space under refurbishment.

In the non-MLI portfolio seven lettings were completed, which would provide a annual rent of £402,861, while the vacancy rate stood at 1.2 percent.

Two small retail assets in the UK at Hemel Hempstead and Walsall were sold for £3.6 million, in line with the combined valuation at March 31, 2019.

“We now have only one remaining high street retail investment in the UK valued at £0.7 million, which is scheduled for sale before the end of the financial year,” he said.

Strenprop’s share price was 0.37 percent higher at R18.75 on the JSE after lunchtime on Tuesday.

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