Stenprop has sold Trafalgar Court, its Guernsey office building, to ARC Global Holdings Ltd., a wholly owned subsidiary of Global Net Lease, Inc., for £55 million.
Totalling 10,564 sqm of gross lettable space, Trafalgar Court office building is located in St Peter Port, Guernsey.
Stenprop said the weighted average rental is currently £419.2 per sqm.
“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 (UK MLI) business by March 2022. The proceeds will be deployed into attractive MLI opportunities in the UK and takes the percentage of MLI in our portfolio to over 90%. We have approximately £45 million of non-MLI assets left to sell and 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 31 March 2022,” said Paul Arenson, CEO of Stenprop.
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 repaid at completion.
Net proceeds from the disposal after deduction of anticipated transaction costs and property taxes are expected to be c.£25.6 million. Stenprop intends to use these proceeds to fund further MLI acquisitions in the MLI sector.