Stenprop CEO Paul Arenson is risking the real estate group’s future on its ability to perform in the UK’s burgeoning multi-let industrial property sector. The group, which on Thursday released financial results for the year to March, would sell all of its nonindustrial assets over the next few years, he said, and become a competitive player in a market segment that offered long-term returns. Disposals worth £210.4m, including £41.7m concluded after the March year-end, yielded proceeds of £97.9m, which would fund the company’s investment in the sector. Arenson said the sector was management-intensive, but it could provide "exciting returns". A multi-let industrial asset is an industrial property that has numerous tenants. This means one default does not affect the viability of an asset.
Stenprop has bought 32 multi-let industrial assets for £158.8m, which means this sub-sector makes up 23% of its total assets. As at year-end, 56 new leases had been signed at these assets and 34...
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