Stenprop says rent collection is steadily improving
Occupancies at the group’s multi-let industrial estates in the UK has risen to 93.3% at the end of September, from 91% at the end of June
UK-focused industrial landlord Stenprop, which is looking to focus entirely on work spaces for small and medium enterprises, says it is seeing continued strong demand for these assets, with rent collection steadily improving after disruption from the Covid-19 pandemic.
Occupancy across the group’s multi-let portfolio, referring to estates catering to multiple tenants, had improved to 93.3% at the end of September, from 91% at the end of March, with the group also reporting increasing inquiry levels.
Total direct inquiries received were up 37% in the three months to end-September, from the previous quarter, the group said.
Rent collections had stabilised at about 90%.
“While we draw confidence from this performance over recent months, we are also aware of the threat from the pandemic and Brexit and the uncertainty this brings, particularly as we enter the winter months,” said CEO Paul Arenson.
Stenprop said it has now collected 88% of rents due since April 2020 and has agreed to defer a further 1% until a later date.
The group is looking to become entirely focused on MLI assets in the UK by March 2022. Currently these assets comprise about 63% of Stenprop’s total property portfolio.
Stenprop said on Friday it had taken advantage of disruption in the market to secure four new MLI acquisitions during the three months to end-September, totalling £36m (R764m).
“The pipeline of potential acquisitions is the strongest it has been for over 12 months, and with over 60% of our portfolio now in the multi let industrial sector, we remain on course for our target 100% weighting in around 18 months’ time,” said MD Julian Carey.
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