Brexit uncertainty a boon for Stenprop

The UK-focused real estate investor acquires 100 industrial units for £16.7 million.

UK-focused real estate investor Stenprop said it has completed the acquisition of 100 industrial units in five separate transactions for a combined £16.7 million, with the company taking advantage of low asset prices as a result of Brexit uncertainty.

Stenprop is focusing on UK multi-let industrial properties and is listed on the Johannesburg Stock Exchange. The company tends to rent space to entrepreneurial tenants and small manufacturing and services businesses.

The acquisitions included the Hillfoot industrial estate in Sheffield, Armthorpe and Trident estates in Middlesbrough,which were acquired from Westbrook Partners for £10.2 million, reflecting a net initial yield of 6 percent for the 81 units. The acquisition also includes individual units at the Parkway business centre in Deeside, Forth industrial estate in Edinburgh and the Holbrook enterprise park, also in Sheffield. These units were purchased for £4.2 million, at a yield of 6.6 percent.

The properties are all purpose-built multi-let industrial assets that met the company's acquisition criteria in terms of location and returns.

“We have a number of other similar acquisitions under review, which we hope to complete in the coming months,” executive property director Julian Carey (pictured) said.

After the transactions, multi-let industrial assets will account for 43.9 percent of Stenprop’s portfolio, the company said. Multi-let assets were expected to comprise about 60 percent of Stenprop’s total portfolio of properties by March 31, 2020.