Stenprop, the UK multi-let industrial (“MLI”) property company, has acquired three multi-let estates as it remains on target to be a fully focused MLI REIT by the end of the next financial year. The three estates in Edinburgh, Cardiff and Wigan have been purchased in separate transactions for a total consideration of £11.82 million. This brings the total number of MLI acquisitions since 30 September 2020 to five for an aggregate value of £25.8 million.
The 81,495 sq ft estate in Wentloog, Cardiff has been acquired for £6.25 million, reflecting a net initial yield (“NIY”) of 6.3%, in an off-market transaction. It currently generates a total annual passing rent of £417,611, equating to an average rent of £5.04 per sq ft on occupied units. The 13-unit, modern estate benefits from its prime location four miles from the city centre and is occupied by a mix of national and international occupiers, including FedEx and National Grid.
Stenprop has also acquired R6 Industrial Estate in Newbridge for £3.9 million, reflecting a NIY of 6.4%. The property complements Stenprop’s two existing estates in Edinburgh and gives the Company further critical mass in a market characterised by a shortage of supply which is underpinning vacancy rates below 4%.
The final transaction is the purchase of Otterwood Square in Wigan for £1.67 million, reflecting a NIY of 6.6%. The 18,867 sq ft property comprises 12 units, generating a current passing rent of £117,000, equating to an average rent of £6.03 per sq ft on occupied units
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