7th Jul 2020 09:26
(Alliance News) - Stenprop Ltd on Tuesday said it has acquired a further 43,500 square feet of multi-let industrial property across four adjoining warehouse units in Stretton Business Park, Staffordshire.
The real estate investment trust said the GBP3.8 million acquisition reflects a net initial yield of 6.9% and a capital value of GBP86 per square feet.
This is the company's first acquisition to complete since the start of the coronavirus pandemic, it said.
Stretton Business Park is an industrial estate in close proximity to Stenprop's existing holdings in Burton-upon-Trent, Albion Gateway and Sovereign Business Park.
The four units are fully occupied on leases delivering a total annual passing rent of GBP278,000, Stenprop said, equating to an average rent of GBP6.39 per square feet.
"Despite the challenging macroeconomic backdrop, the outlook for the multi-let industrial sector in the UK remains strong and we continue to be encouraged by the levels of demand for space across our portfolio," said Head of Investment Will Lutton.
"The income profile of these assets perfectly fits our strategy to grow contracted rent and is supported by the favourable local market dynamics," added Lutton.
Stenprop shares were trading 0.8% higher in London on Tuesday at 123.00 pence each, while in Johannesburg, the stock was untraded, last closing at ZAR25.03 a share.
By Evelina Grecenko; [email protected]
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