Stenprop buys M&G’s Duke portfolio for £13.6m
Multi-let shed specialist Stenprop has bought M&G’s Duke Portfolio for £13.6m.
In two separate transactions Stenprop netted the portfolio of five multi-let industrial estates and the Whitacre Industrial Park in Huddersfield. The combined purchase price reflects a net initial yield of 7.2% and a capital value of £64 per sq ft.
The Duke Portfolio’s five purpose-built MLI estates total 225,139 sq ft and are 82% let to 54 tenants. The portfolio generates a total annual passing rent of just over £1m, equating to an average rent of £5.69 per sq ft. It comprises Corringham Road Industrial Estate in Gainsborough; Motherwell Food Park in Bellshill; and Caldwellside Industrial Estate in Lanark; and, somewhat confusingly, two estates in Hull which are both called Acorn Industrial Estate.
Multi-let shed specialist Stenprop has bought M&G’s Duke Portfolio for £13.6m.
In two separate transactions Stenprop netted the portfolio of five multi-let industrial estates and the Whitacre Industrial Park in Huddersfield. The combined purchase price reflects a net initial yield of 7.2% and a capital value of £64 per sq ft.
The Duke Portfolio’s five purpose-built MLI estates total 225,139 sq ft and are 82% let to 54 tenants. The portfolio generates a total annual passing rent of just over £1m, equating to an average rent of £5.69 per sq ft. It comprises Corringham Road Industrial Estate in Gainsborough; Motherwell Food Park in Bellshill; and Caldwellside Industrial Estate in Lanark; and, somewhat confusingly, two estates in Hull which are both called Acorn Industrial Estate.
Stenprop also bought the 24,730 sq ft Whitacre Industrial Park for £2.3m. The 1.7-acre estate is next to Stenprop’s existing estate in Huddersfield, Ellis Hill Industrial Estate, which was acquired in December 2018. It currently generates a total annual passing rent of £170,166 across 14 fully let units, reflecting a passing rent of £6.88 per sq ft.
Stenprop’s MLI portfolio now covers more than 6.3m sq ft across 90 estates and accounts for 83% of its total portfolio. It plans to be a fully focused MLI REIT by the end of this financial year.
Head of investment Will Lutton said: “We are confident that adding these MLI assets, in undersupplied regional locations, will enable us to significantly grow the rents over time through the application of our smart lease solution and management platform.”
Stenprop was represented by CBRE on the acquisition of the Duke Portfolio and Ereira Mendoza on Whitacre Industrial Park.
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