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Acquisition of Bradley Hall Trading Estate
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
7 July 2021
Stenprop continues multi-let industrial transition with £20.6 million Wigan acquisition
Company on track to be 100% MLI by 31 March 2022
Stenprop, the UK multi-let industrial (“MLI”) owner and operator, announces that it has acquired
Bradley Hall Trading Estate, Wigan from HIMOR (Property) Limited for £20.6 million, reflecting a net
initial yield of 6.43% and a capital value of £67.40 per sq ft on the MLI space and £8.95 per sq ft on the
yard areas.
The property comprises 275,079 sq ft of terraced MLI units ranging in size from 344 sq ft to
28,896 sq ft, and 230,062 sq ft of income producing yard areas. It is 100% let to a diverse range of
local and national businesses and generates a total annual passing rent of £1.4 million, equating to an
average rent of £4.61 per sq ft on the built units and £0.61 per sq ft on the yard areas. This compares
favourably with the average passing rent of £5.46 per sq ft on Stenprop’s current portfolio of 5.6
million sq ft. 99% of rent due at the estate in H1 2021 was collected, reflecting the critical importance
of the units to the estate’s occupiers.
The estate also offers potential for Stenprop to grow income and value through asset management,
with several lease events due in the near term, as well as potential development opportunities to
increase the low site density.
Located in an established commercial hub five miles north of Wigan town centre, the estate benefits
from its excellent transport connections, with both Junction 27 of the M6 and Junction 6 of the M61
a short drive away.
The North West has been one of the strongest performing industrial and logistics regions in recent
years. The market has been characterised by a growing demand supply imbalance, in particular for
smaller SME/MLI units ranging between 1,000 and 20,000 sq ft, which has been exacerbated by a lack
of speculative development. At £67 per sq ft capital value, development of new supply is not feasible
as build costs for similar units are significantly higher.
Stenprop has continued to grow its exposure in the region, which now totals over 1.5 million sq ft,
following several recent acquisitions, representing c 26% of its MLI portfolio.
Following this acquisition, the Company's MLI portfolio now accounts for 75% of Stenprop's total
portfolio, and the Company remains on track to be 100% MLI by the end of the current financial year.
Will Lutton, Head of Investment at Stenprop, commented: “Located in one of the best performing
industrial regions of the UK, this acquisition fits well with our strategy of acquiring assets with strong
day one income and the opportunity to add value using our management platform. We have already
identified a range of asset management opportunities at the Bradley Hall Estate which we are
confident will enable us to increase the rents significantly over time. The granular tenant base and
smaller unit sizes are well suited for the strength of our Industrials Hive operating platform and our
Customer Engagement Manager and Smart Lease models.”
Stenprop was represented by B8 Real Estate on the transaction.
This announcement is voluntary and for information purposes only.
For further information:
Stenprop Limited +44 (0)20 3918 6600
Paul Arenson (paul.arenson@stenprop.com)
Julian Carey (julian.carey@stenprop.com)
James Beaumont (james.beaumont@stenprop.com)
Numis Securities Limited (Financial Adviser) +44 (0)20 7260 1000
Hugh Jonathan
Vicki Paine
Justin Bell
FTI Consulting +44 (0)20 3727 1000
Richard Sunderland stenprop@fticonsulting.com
Richard Gotla
Indraneel Bose
Java Capital +27 (0) 11 722 3050
(JSE Sponsor)
About Stenprop:
Stenprop is a UK REIT listed on the LSE and the JSE. The objective of the Company is to deliver
sustainable growing income to its investors. Stenprop's investment policy is to invest in a diversified
portfolio of UK multi-let industrial (MLI) properties with the strategic goal of becoming the leading
MLI business in the UK. For further information, go to stenprop.com.
Date: 07-07-2021 08:00:00
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