Stenprop sells Euston House for £95m
Stenprop has sold Euston House, at 24 Eversholt Street, NW1, for £95m. Erel 4 S.a.r.l., a subsidiary of French investment management business Eurazeo, and Arax Properties acquired the central London office in a joint venture.
The sale will release cash proceeds of £66m for the property company, after sales costs, rental top-ups and external debt repayment.
The proceeds will be used to fund multilet industrial properties, as Stenprop repositions itself as a 100% UK MLI property business.
Stenprop has sold Euston House, at 24 Eversholt Street, NW1, for £95m. Erel 4 S.a.r.l., a subsidiary of French investment management business Eurazeo, and Arax Properties acquired the central London office in a joint venture.
The sale will release cash proceeds of £66m for the property company, after sales costs, rental top-ups and external debt repayment.
The proceeds will be used to fund multilet industrial properties, as Stenprop repositions itself as a 100% UK MLI property business.
It is the last of its London offices to be sold, completing sales of more than £216.6m, reducing its LTV to less than 45%.
Following completion of the sale, MLI will make up 40% of Stenprop’s total assets, up from 27% in its September trading results.
Paul Arenson, chief executive of Stenprop, said: “This sale represents another important step in the implementation of our two-year strategic transition plan communicated to shareholders, which envisages being at 65% MLI by 31 March 2020 with no more than 40% overall leverage.”
Last year, Stenprop transitioned to focus on the UK MLI market. The plan required the business to sell approximately £470m of non-MLI assets by March 2020 and to acquire £220m of MLI assets.
Stenprop was advised by Gerald Eve.
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