Stenprop has acquired three multi-let industrial estates in Edinburgh, Cardiff and Wigan in separate transactions for a total consideration of £11.82 million.
The 13-unit, 81,495 sq ft estate in Wentloog, Cardiff has been acquired for £6.25 million, reflecting a net initial yield (NIY) of 6.3%, in an off-market transaction. It currently generates a total annual passing rent of £417,611, equating to an average rent of £5.04 per sq ft on occupied units.
Stenprop has also acquired R6 Industrial Estate in Newbridge for £3.9 million, reflecting a NIY of 6.4%. The recently refurbished 31,860 sq ft estate generates an annual passing rent of £264,510, equating to an average rent of £8.14 per sq ft on occupied units.
The final transaction is the purchase of Otterwood Square in Wigan for £1.67 million, reflecting a NIY of 6.6%. The 18,867 sq ft property comprises 12 units, generating a current passing rent of £117,000, equating to an average rent of £6.03 per sq ft on occupied units.
As a result of these acquisitions, Stenprop will have invested £66 million since 1 April 2020 and the Company’s MLI portfolio now accounts for 64% of Stenprop’s total assets, up from 58% at the start of the year, as it remains on track to be 100% MLI by the end of the next financial year.
“Despite some periods of subdued investment activity during the year as a result of COVID-19, we were able to leverage the data from our Industrials.co.uk platform to identify the post lockdown recovery early. This gave us the confidence to begin investing ahead of the markets opening fully and allowed us to finish the year strongly. These three MLI estates are in excellent industrial locations and offer strong day one income alongside a range of both near and longer-term asset management opportunities to drive rents and capital growth. In line with previous acquisitions, our strategy is to work closely with the occupiers to align their occupation with various estate management improvements. Reflecting the compelling fundamentals underpinning the sector, alongside the strength of our proprietary industrials leasing platform, we remain on track to be 75% MLI by the end of the current financial year,” said Will Lutton, Head of Investment at Stenprop.
