Stenprop acquires multi-let Dunball Industrial Estate for £4.8m

Posted On Wednesday, 17 October 2018 17:13 Published by
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Stenprop, the UK multi-let industrial property investor, has acquired an industrial estate in Bridgwater, Somerset, in an off-market deal from a private investor for £4.8 million, which reflects a net reversionary yield of 6.9%.

Julian-Carey-Stenprop
Dunball Industrial Estate is a modern estate, which is strategically located just off junction 23 of the M5. Stenprop has acquired four terraced units, totalling 48,432 sq ft of industrial space. Three of the units are let to Scania, Wincanton and Astigan and one is vacant.

The weighted average unexpired lease term is 2.5 years to lease expiries and 1.7 years to lease breaks. The total annual passing rent of £245,000 equates to a low average rent of £6.74/sq ft. Julian Carey, Executive Property Director of Stenprop, said: “This is an excellent addition to our portfolio in a region where we were underweight. Dunball Industrial Estate has a strong letting history, with opportunities for immediate rental growth and a strong tenant line up. The wider Bridgwater area is undergoing a period of change with the development of the nuclear power station at Hinkley Point C, which will create 25,000 jobs and increase industrial demand in the short, medium and long terms”.

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 at Dunball Industrial Estate, MLI assets account for 27.3% 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.
This announcement is voluntary and for information purposes only.

Last modified on Thursday, 18 October 2018 08:44
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