London property company acquires four new warehouses for £3.75m

A London industrial property company has today announced the acquisition of £3.75m worth of warehouse space.

Stenprop, a multi-let industrial (MLI) property company, has acquired 43,500 sq ft across four adjoining warehouse units in Stretton Business Park, in Burton upon Trent.

The £3.75 million acquisition reflects a net initial yield of 6.9% and a capital value of £86 per sq ft.

The company has said that the acquisition marks a step forward achieving its goal of achieving a 100 per cent focus on the MLI sector by 2022 and is its first acquisition to complete since the start of the coronavirus pandemic.

The four units are fully occupied on leases delivering a total annual passing rent of £278k.

Will Lutton, head of investment at Stenprop, commented: “Despite the challenging macroeconomic backdrop, the outlook for the multi-let industrial 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.

“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 2020 and are pleased to have completed the acquisition on renegotiated terms three months later.”

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