Stenprop has acquired two multi-let industrial (MLI) properties for £11.1m, reflecting a blended net initial yield of 6.5%.
The two estates, in Glasgow and Stoke-on-Trent, comprise 18 units and brings Stenprop’s MLI portfolio to over 5m sq ft and 61% of its overall portfolio.
The Excelsior Industrial Estate on the south west side of Glasgow was acquired for £5.2m from CBRE GI. It generates a total annual passing rent of £350,133, equating to an average rent of £6.17 per sq ft.
The second purchase was the Tunstall Trade Park, just outside Stoke-on-Trent, which totals 56,500 sq ft across eight units. It was bought for £5.9m from Clowes Developments. The estate is 100% occupied and has a passing rent of £392,541, equating to an average of rent of £6.95 per sq ft.
Since the start of the Coronavirus pandemic, Stenprop has made five acquisitions totalling over 470,000 sq ft of MLI property for a combined value of £39.95m.
Julian Carey, managing director of Stenprop, said: “Passing five million square feet of MLI is a major milestone for Stenprop. Having made the strategic decision to transition the portfolio towards 100% UK MLI based on our belief that structural changes taking place in the UK would underpin warehouse occupier demand, we remain steadfast in our belief in the sector’s future prospects and our ability to translate this into attractive shareholder returns.”
STP : Stenprop acquires two industrial estates for £11.1m