UK’s real estate investor, Stenprop said it has acquired Estuary Court, an industrial estate in Newport, South Wales, from Storage Giant for £3.1 million.
Stenprop said in a statement that the acquisition reflects a net initial yield of 7.6%. Estuary Court is a modern estate, located in the established industrial location of Queensway Meadows.
The company said in a statement that the property comprises of 20 units, totalling 34,980 sq ft of industrial and trade counter space, and is fully let to 17 tenants, including Clark Foods, Thrifty, Europcar, Rearo Laminates and Halo Foods. The weighted average unexpired lease term is 4.3 years to lease expiries and 3.5 years to lease breaks.
The total annual passing rent of £251,493 equates to an average rent of £6.87/sq ft. Julian Carey, Executive Property Director of Stenprop, said: “Estuary Court is an excellent addition to our portfolio. It is well placed to capitalise on growing demand for industrial accommodation as a result of the removal of bridge tolls across the River Severn later this year”.
Stenprop has taken the strategic decision that its objective to deliver sustainable, growing income to shareholders is best achieved by becoming a specialised UK multi-let industrial (MLI) property company. This strategic repositioning means that Stenprop intends, over the next few years, to sell all, or substantially all, of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.
Following the acquisition of Estuary Court, MLI assets account for 22.9% of Stenprop’s portfolio. MLI assets are expected to comprise approximately 60% to 65% of Stenprop’s total portfolio of properties by 31 March 2020.