STENPROP LIMITED - Disposal of office building located at 25 Argyll Street

Disposal of office building located at 25 Argyll Street

STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
BSX share code: STP.BH JSE share code: STP
ISIN: GG00BFWMR296
(“Stenprop”)


DISPOSAL OF OFFICE BUILDING LOCATED AT 25 ARGYLL STREET


1. INTRODUCTION

   Shareholders are advised that Stenprop has disposed of its 50% interest in the property known as 25 Argyll Street, situated at
   252-260 (even) Regent Street and 19-27(odd) Argyll St, London, W1 (“the Property”) via a sale of its shares in Stenprop Argyll
   Limited (“SAL”) to the holders of the remaining 50% interest, being Darlaya Limited (“DL”) and Yennelle Limited (“YL”) which
   each hold 25% of the issued share capital of SAL, (“the Buyers”) for a consideration of £22.78 million (“the Consideration”)
   which values the Property at £83.4 million (“the Disposal”).

2. RATIONALE FOR THE DISPOSAL

   Stenprop has previously announced its intention to become a specialised UK multi-let industrial (“MLI”) REIT and, over the
   next few years, to sell substantially all of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.
   The Disposal is in line with this strategy.

3. TERMS OF THE DISPOSAL

   In terms of the Sale and Purchase Agreement signed on 4 June 2018 (“the SPA”), Stenprop (UK) Limited (“Stenprop UK”), a
   wholly owned subsidiary of Stenprop, sold all of its shares in SAL with effect from the date of the SPA,

   The buyer acquired Stenprop UK’s shares in SAL for an initial consideration of £22.78 million which was settled in cash, and
   was based on the estimated net asset value of SAL at the date of the SPA. The Consideration is subject to a further post-
   completion adjustment to take account of any difference between the actual and the estimated net asset value of SAL at the
   date of the SPA.

   Normal warranties and indemnities for a transaction of this nature have been provided by Stenprop.

4. PROPERTY SPECIFIC INFORMATION

                                                                               Weighted          Valuation*      After tax EPRA
                                                                                average                 (£)         earnings**
                                                                             rental per                                     (£)
                                                                                 square
                                                                     GLA          metre
    Property name        Geographic location (UK)      Sector      (sq.ft)       (£ psf)
                         252-260 (even) Regent
    25 Argyll Street     Street and 19-27(odd)         Office     63,091          65.15          83 400 000        1 298 641
                         Argyll St, London, W1

   *The value attributable to the 100% of the Property, as determined in accordance with Royal Institution of Chartered Surveyors
   standards by JLL, an external valuer, is the valuation which will be reflected in Stenprop’s consolidated statement of financial
   position at 31 March 2018, and is the same as the value derived from the Consideration. This compares with the value
   attributable to the Property at 30 September 2017, as determined in accordance with Royal Institution of Chartered Surveyors
   standards by JLL, of £81 million.
   **Stenprop’s share of the after tax EPRA earnings attributable to SAL is based on Stenprop’s consolidated statement of
   comprehensive income for the year ended 31 March 2018.

5. CATEGORISATION OF THE DISPOSAL

   The Disposal is classified as a category 2 transaction in terms of the JSE Listings Requirements. Accordingly, it is not subject to
   approval by shareholders.
                                                                                                 

Stenprop has a primary listing on the Main Board of the JSE and a secondary listing on the BSX.

4 June 2018


JSE sponsor
Java Capital


Bermuda Stock Exchange sponsor
Estera Securities (Bermuda) Limited

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