JOHANNESBURG - Stenprop, the listed UK property company, has made further progress with its strategy of becoming a specialised UK multi-let industrial property company, announcing yesterday that it had acquired an industrial estate in Aberdeen in Scotland for R56.16 million.

The company said that it had bought the Lombard Centre in an off-market transaction from Mayfair Capital.

Stenprop said that the Lombard Centre was a modern estate comprising 10 units which are providing a total of 32622 square feet (3030m²) of industrial space that was let to six tenants.

Stenprop said the tenants included Mitie, J&S Limited, and Pirtek, but one unit was vacant.

It said the total annual passing rent of £280902 equated to an average rent of £9.30 a square foot.

The transaction was in line with the strategic decision taken by Stenprop that its objective to deliver sustainable and growing income to its shareholders was best achieved by becoming a specialised UK multi-let industrial property company.

This strategic repositioning means that Stenprop intends to sell almost all of its non-multi-let industrial assets in the next few years and use the proceeds from these sales to build a focused UK multi-let industrial business.

Following the acquisition of the Lombard Centre, multi-let industrial property assets accounted for 26.9percent of Stenprop’s portfolio.

Multi-let industrial assets were expected to comprise between 60 and 65percent of Stenprop’s total portfolio of properties by end-March 2020.

Julian Carey, the executive property director at Stenprop, said that the group had acquired another high-quality, purpose-built estate as part of their transition into a focused multi-let industrial company.

Carey said the Lombard Centre was located adjacent to Aberdeen’s international airport and heliport in a prime industrial area, with healthy industrial demand and limited supply.

Stenprop shares closed 0.50percent lower on the JSE yesterday at R19.90.

-BUSINESS REPORT