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Hansteen sells portfolio to Stenprop

Stenprop collects 73% of rent during covid-19

Hansteen sells portfolio to Stenprop – Stenprop has acquired a portfolio of multi-let industrial properties from Hansteen for £72.2m (including acquisition costs of £4.3m).

The portfolio is made up of 22 separate properties across the UK with a gross lettable area of approximately 1.16 million square feet (107,749 sq m) and a diversified base of approximately 281 tenancies. The current passing annual rent is £4.89m and the forecast annual rental income for the year ending 31 March 2020 is £4.56m.

Paul Arenson, Stenprop’s CEO, said: “The acquisition of the portfolio is a big step forward in delivering our strategy of becoming the leading multi-let industrial business in the UK. The acquisition is earnings enhancing from inception and increases the multi-let industrial component of our portfolio to more than 34%. The purchase has been funded partly from the sale proceeds of our Swiss and Aldi portfolios and partly from the short-term use of our Investec Revolving Credit Facility. We have other sales of properties in the pipeline. Once these sales are completed, overall debt will reduce to approximately 44% LTV and the multi-let industrial component will represent more than 41% of our portfolio. We are on track to meet our timetable for the two-year strategic plan communicated to investors which envisaged being at 65% multi-let industrial by 31 March 2020 with 40% overall leverage“.

Stenprop aims become the leading multi-let industrial business in the UK, shifting its focus from other property sectors. Julian Carey, Stenprop’s executive property director, said: “The portfolio comprises 22 purpose-built multi-let industrial estates with an average unit size of 3,500 sq ft located in densely-populated urban areas where demand for flexible industrial accommodation continues to grow. The size of the individual units is comparable with our existing portfolio and is representative of the segment of the market where we feel there is the greatest potential for our serviced industrial concept. Furthermore, the average rent of £4.48/sq ft is around 20% lower than that on our existing multi-let industrial portfolio, providing room for rental growth to be captured through asset management. The portfolio also boosts our representation in the key regional industrial markets around Manchester, Birmingham and Liverpool, and the investment we have made into our technology over the last year will enable us to quickly and efficiently absorb the assets onto our Industrials.co.uk platform“.

The purchase price was paid in cash, using existing cash resources and a drawdown of £35m under the Investec revolving credit facility which Stenprop intends to repay using the proceeds from the disposal of assets held for sale and a bank loan of approximately £27.2m to be secured against the portfolio (in late January 2019).

Portfolio

(name, location, gross lettable area in square feet, and weighted average rental per square foot)

Horsham, Star Road Industrial Estate, 1 Partridge Green, South East, 66,160, 6.46

Burton upon Trent, Albion Gateway, 2 Battista Road, Midlands, 27,967, 6.20

Burntwood, Chasewater Heaths Business 3 Pk, Cobbett Road, Midlands, 40,246, 5.46

Stoke on Trent, Queensway Industrial 4 Estate, Longbridge Road, Midlands, 64,571, 4.17

Birmingham, Tyburn Trading Estate, 5 Ashfold Farm Road, Midlands, 51,297, 5.31

Loughborough, Windmill Road Industrial 6 Estate, Windmill Road, Midlands, 29,322, 5.09

Holywell – Greenfield A-M, Greenfield 7 Business Pk (A-M), Bagillt Road, Wales, 128,400, 3.04

Rhyl, Tir Llwyd Industrial Estate, 8 St. Asaph Avenue, Wales, 68,042, 4.91

Rochdale, Phoenix Close Ind Est, 9 Heywood Yorkshire, 42,183, 5.90

Sheffield, Holbrook Enterprise Park, 10 Enterprise Way, Yorkshire, 53,062, 5.01

Darlington – Cleveland, Cleveland 11 Trading Estate, Cleveland St, North East, 29,764, 4.12

Ellesmere Port – Venture Point, Stanney 12 Mill Road, North West, 45,158, 5.60

Huyton, Chapel Brook Trade Park, 13 13 Wilson Road, North West, 84,762, 3.78

14 Liverpool, Brasenose Road, North West, 85,132, 3.18

Middleton – Hanson Park, Hanson Park, 15 Hanson Close, North West, 10,099, 6.14

Middleton – Jubilee Park, Jubilee 16 Park, Hanson Road, North West, 15,300, 4.04

Middleton – Townley Pk, Townley Park, 17 Hanson Street, North West, 32,608, 4.89

Liverpool, Larch Lea Industrial Estate, 18 Castor Street, North West, 46,382, 3.80

Liverpool, Link at Huyton Business 19 Pk, Ellis Ashton Street, North West, 86,971, 3.74

Prestwich, Mountheath Trading Est, 20 Ardent Way, North West, 36,596, 7.61

Preston, Old Mill Industrial Estate, 21 School Lane, Bamber Bridge, North West, 102,779, 3.60

22 Darwen, Watery Lane, North West, 13,004, 4.22

HSTN / STP : Hansteen sells portfolio to Stenprop

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