UK multi-let industrial (MLI) property company Stenprop has acquired a further 43 500 ft2 of MLI property across four adjoining warehouse units in Stretton Business Park, in Burton upon Trent, Staffordshire.
The £3.75-million acquisition reflects a net initial yield of 6.9% and a capital value of £86/ft2.
The acquisition marks a further step forward in the company achieving its goal of putting its full focus on the MLI sector by 2022.
Stretton Business Park is a modern and well-located industrial estate in close proximity to Stenprop’s existing holdings in Burton upon Trent, Albion Gateway and Sovereign Business Park.
The four modern units are fully occupied on leases delivering a yearly passing rent of £278 000.
“Despite the challenging macroeconomic backdrop, the outlook for the MLI sector in the UK remains strong and we continue to be encouraged by the levels of demand for space across our portfolio, most notably through our Industrials.co.uk leasing platform,” says Stenprop investment head Will Lutton.
“The sector is underpinned by a number of prevalent structural trends, led by e-commerce penetration, which have accelerated considerably as a result of Covid-19 lockdown. The income profile of these assets perfectly fits our strategy to grow contracted rent and is supported by the favourable local market dynamics.
This acquisition is another step forward in our goal of transitioning our entire portfolio into MLI. We were close to acquiring this property prior to the coronavirus outbreak in March and are pleased to have completed the acquisition on renegotiated terms three months later,” he adds.