Stenprop, the UK multi-let industrial (MLI) property company also listed on the JSE, said it had completed several transactions which progressed its goal of becoming a fully focused MLI real estate investment trust (Reit). Photo: James White
Stenprop, the UK multi-let industrial (MLI) property company also listed on the JSE, said it had completed several transactions which progressed its goal of becoming a fully focused MLI real estate investment trust (Reit). Photo: James White

Stenprop on its way to being a fully focused multi-let Reit

By Edward West Time of article published Apr 5, 2021

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CAPE TOWN - STENPROP, the UK multi-let industrial (MLI) property company also listed on the JSE, said it had completed several transactions which progressed its goal of becoming a fully focused MLI real estate investment trust (Reit).

This included the acquisition of Headlands Trading Estate in Swindon for £7.4 million (about R150m); disposal of the Bikemax portfolio of five German retail warehouse units based on a property value of €27m and the sale of the Victoria Centre retail property in Berlin for €37.45m.

The sales of all the German assets were based on the September 30, 2020 book values.

Headlands Trading Estate provides 106 000 square feet (9 848 square metres) of MLI space across 19 units and was fully let to a diverse occupier base.

Stenprop chief executive Paul Arenson said in a statement the estate offered several asset management and development opportunities to help drive future income.

The purchase means Stenprop had completed 14 UK MLI acquisitions this financial year, for £91.5m in total.

Completion of the three transactions would take Stenprop’s portfolio to over 73 percent MLI based on September 2020 valuations. Following completion of the sale of Hermann Quartier – announced on December 29, 2020 – the percentage of UK MLI in the portfolio would rise to over 75 percent.

“This is a particularly strong performance when one considers the period coincided with the advent of the Covid-19 pandemic and the first of several lockdowns in both the UK and Germany,” said Arenson.

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