Stenprop expands in the UK with trading estate purchase
The move comes after its announcement two years ago that it is to become a UK-focused business in the multi-let industrial area
Industrial-focused property fund Stenprop has strengthened its position in the UK industrial letting market with its acquisition of Gainsborough Trading Estate for about R116.8m. The acquisition follows the group’s announcement two years ago that it is repositioning to become a specialist UK-focused business that provides work spaces for small- to medium-sized firms. The JSE-listed Stenprop said in its 2018 annual report that even though its “[property] portfolio was of excellent quality and well-let”, it opted to move into the multi-let industrial area (MLI) because the growth prospects of its portfolio were stagnating. By comparison, it said the prospects for growth in MLI industrial estates were stronger, but for it to take full advantage of the opportunities in this sector, it needs to increase the number of MLI assets it owns, and also needs a management platform that can deal with the “granular nature of the tenant base”, as well as the short bases of its leases. To fund this ...
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