Stenprop acquires Bowthorpe Park Industrial Estate in Norwich for GBP19.6m

Stenprop, a UK multi-let industrial (MLI) property company, has simultaneously exchanged and completed the purchase of Bowthorpe Park Industrial Estate in Norwich, UK from Blackrock Industrial Trust for GBP19.6 million. The purchase price reflects a net initial yield of 6.35 per cent.

With excellent access to the A47 and in turn the national road network, the 16-acre park provides 22,829 sq m (245,730 sq ft) of gross lettable MLI space across 76 units. It is currently circa 94 per cent let to a wide range of tenants including manufacturers, distributers, high-tech companies and trade counters at a weighted average rental of GBP58 per sq m (GBP5.40 per sq ft).

The acquisition is in line with Stenprop’s strategy to become a 100 per cent UK MLI business. As a result of this acquisition, the percentage of MLI assets within Stenprop’s portfolio rose from 58 per cent to 60 per cent, based on the Company’s total property asset value at 31 March 2020. Following completion of the sale of the Neucӧlln Carrée retail park in Berlin, expected to occur by no later than 15 January 2021, the percentage of MLI assets within the portfolio will rise to 62 per cent based on the Company’s total property asset value at 31 March 2020.
Will Lutton, Head of Investment at Stenprop, says: “We are pleased to have secured this estate, which fits well with our investment criteria. The small average unit size mirrors our existing portfolio and variety of occupiers provides diversification of income. We are confident we can drive performance through the roll-out of our leasing platform and flexible leasing model across the asset.
“We have been encouraged by the data we have collected from our existing portfolio during the COVID-19 crisis, with evidence of pent up demand from occupiers across the country. That knowledge, combined with the underlying market dynamics in Norwich, which has a low void rate, is a strong indicator that this estate is well placed to deliver sustainable and growing income returns.”