C2 CAPITAL DEAL
Stenprop boosts UK portfolio with industrial properties
Stenprop is set to grow its UK-based portfolio by about a third, following an agreement to acquire a portfolio of multi-let industrial properties as well as the portfolio’s manager, C2 Capital, for a combined consideration of £130.5m.
Before the transaction, Stenprop’s portfolio was worth about €900m. Stenprop owns assets in the UK, Germany and Switzerland.
The C2 Capital portfolio, which operates under the brand, industrials.co.uk, comprised 25 industrial estates located across the UK totalling a gross leasable area of about 200,000m² and a diversified base of more than 400 tenants.
C2 Capital was established in 2009 by Julian Carey and comprised a team of seven investment and asset-management professionals. Following the transaction, the C2 Capital team would be responsible for growing Stenprop’s UK industrial presence under the brand.
"The combination of the portfolio and the management platform represents a strategic investment for Stenprop. We’ve been looking for the right opportunity to enter the multi-let industrial sector as we believe it offers tremendous growth opportunities underpinned by a number of positive fundamentals, including constrained supply and growing demand," said CEO Paul Arenson.
Keillen Ndlovu, Stanlib head of listed property funds, said Stenprop had managed to buy what appeared to be an attractive asset. "The industrial sector is now probably the most preferred or most sought after sector in the UK. The industrial sector now generally ranks ahead of the retail and office sectors."