21st Dec 2020 09:12
(Alliance News) - Stenprop Ltd on Monday said it has exchanged contracts on the sale of its freehold interest in the Victoria Centre in Berlin to Art-Invest Real Estate Funds GmbH for EUR37.5 million.
The UK-based property company said the disposal price is at the property's September 30 book value and reflects a 19% premium to the March 31 book value.
The sale of the German retail centre is in line with Stenprop's strategy to become a 100% UK multi-let industrial property business via the sale of all non-core properties in its portfolio and the reinvestment of the proceeds into UK MLI properties.
Net proceeds from the sale after deduction of anticipated transaction costs, repayment of debt and property taxes is expected to be EUR24.1 million, the company said. Stenprop intends to use the net proceeds from the disposal to fund further acquisitions of multi-let industrial properties in the UK.
Providing 13,718 square metres of gross lettable space, the Victoria Centre is let to eight tenants and anchored by supermarket chain Kaufland. The weighted average rental is currently EUR10.60 per square metre.
"Our second Berlin retail centre disposal, achieved at a 19% premium to our March valuation, underlines both the strength of these assets and their appeal to the German domestic investor market as well as our ability to successfully execute on our stated asset management initiatives," said James Wakelin, head of debt & special projects at Stenprop.
"The sale will allow us to continue our multi-let industrial acquisition programme in the UK, which has accelerated since the summer with the addition of 790,000 square feet of new multi-let industrial space added to the portfolio," added Wakelin.
Stenprop shares were trading 0.8% higher in London on Monday at 135.00 pence each, while in Johannesburg, the stock was down 0.2% at ZAR26.50 a share.
By Evelina Grecenko; [email protected]
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