Stenprop acquired eight multilet industrial estates for £23.9m in the third quarter, citing weakened competition as political uncertainty continues.
The assets total 317,923 sq ft and have an average occupancy rate of 92% and 89 tenants. They have provided an additional £1.6m of rental income, averaging £5.54 per sq ft.
Paul Arenson, chief executive of Stenprop, said: “The MLI occupational market remains strong with demand outstripping supply. Lease incentives remain limited and we are realising significant rental uplifts when leases are renewed.
“We have also had a good quarter of individual MLI acquisitions after an unusually quiet start in the first quarter of the financial year. There was marginally less competition in the market over the period, largely as a result of the UK’s political instability.”
Stenprop is continuing its transition into a focused UK MLI company, with the aim of becoming the UK’s leading MLI business. Stenprop has set out a transition plan which involves transitioning the portfolio to at least 60% MLI and reducing overall leverage to a loan-to-value ratio of no more than 40% by March 2020, with the plan to transition to 100% MLI over the following 12 to 24 months.
At 30 September 2019, MLI comprised 45% of Stenprop’s portfolio and the LTV was 42%.
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