Stenprop’s chief executive says demand for multi-let industrial space “is as high as we’ve ever witnessed”, as the company posts a record quarter for leasing.
In a trading update covering the first quarter of this year, Stenprop said it has signed £1.54m of annual rent across 50 new lettings and 33 renewals. Occupancy over the quarter edged up to 93.%, with leasing enquiries more than 50% up on the first quarter of last year and some 66 transactions under offer at the quarter end.
The company saw an average uplift of a quarter on previous passing rent on new lettings and of 15% on renewals. It has collected roughly 90% of rent due over the course of the pandemic.
“Demand for MLI space across the UK is as high as we’ve ever witnessed,” said chief executive Paul Arenson. “We are successfully capturing and converting this into new customers, which is reflected in the falling vacancy rate.”
The company met its divestment and investment targets for the full year ending 31 March, completing more than £90m of acquisitions and taking its disposal programme “materially ahead of expectations”.
Stenprop’s portfolio is now almost 75% multi-let industrial assets. In an interview earlier this month with EG, managing director Julian Carey said: “The transition [to multi-let] has gone to plan, almost to the day. We’ve hit our milestones and are ticking the ‘do as you say’ box. We like to think we are coming to the fruition of our strategy.”
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