LONDON: Stenprop Limited, the UK multi-let industrial (MLI) property company, has simultaneously exchanged and completed the purchase of Bowthorpe Park Industrial Estate in Norwich, UK from Blackrock Industrial Trust for £19.6 million, a news release said. The purchase price reflects a net initial yield of 6.35%.

With excellent access to the A47 and in turn the national road network, the 16-acre park provides 22,829 sqm (245,730 sq ft) of gross lettable MLI space across 76 units. It is currently circa 94% let to a wide range of tenants including manufacturers, distributers, high-tech companies and trade counters at a weighted average rental of £58 per sqm (£5.40 per sq ft).

The acquisition is in line with Stenprop’s strategy to become a 100% UK MLI business.  As a result of this acquisition, the percentage of MLI assets within Stenprop’s portfolio rose from 58% to 60%, based on the Company’s total property asset value at 31 March 2020. Following completion of the sale of the Neucӧlln Carrée retail park in Berlin, expected to occur by no later than 15 January 2021, the percentage of MLI assets within the portfolio will rise to 62% based on the Company’s total property asset value at 31 March 2020.

Will Lutton, Head of Investment at Stenprop, commented: “We are pleased to have secured this estate, which fits well with our investment criteria. The small average unit size mirrors our existing portfolio and variety of occupiers provides diversification of income. We are confident we can drive performance through the roll-out of our Industrials.co.uk leasing platform and flexible leasing model across the asset.

“We have been encouraged by the data we have collected from our existing portfolio during the COVID-19 crisis, with evidence of pent up demand from occupiers across the country. That knowledge, combined with the underlying market dynamics in Norwich, which has a low void rate, is a strong indicator that this estate is well placed to deliver sustainable and growing income returns.”

Stenprop acquired the property from BNPDSJ & BlackRock (CI) Limited as trustees of BlackRock Industrial Trust for a total purchase price of £19.6 million. Simultaneous exchange and completion of the transaction took place on 21 July 2020, being the effective date of the acquisition. The acquisition was funded from the Company’s existing cash resources.

Stenprop is a UK REIT listed on the LSE and the JSE. The objective of the Company is to deliver sustainable growing income to its investors. Stenprop’s investment policy is to invest in a diversified portfolio of UK multi-let industrial (MLI) properties with the strategic goal of becoming the leading MLI business in the UK.