Stenprop acquires 73,000 sq ft Glasgow industrial estate
Stenprop, a UK multi-let industrial (MLI) property company, has acquired St Andrews Industrial Estate, a 73,248 sq ft MLI estate of nine high quality warehouse units near Glasgow City Centre.
The GBP5.5 million acquisition price reflects a net initial yield of 7.3 per cent and a capital value of GBP75 per sq ft.
Located on the south side of Glasgow, the estate benefits from its proximity to the city centre as well as excellent arterial connectivity, with both the M8 and M74 within 1.5 miles.
Of the nine modern industrial units, seven are currently occupied by a diverse range of tenants including storage, trade counter and manufacturing uses, accounting for 85 per cent of the gross lettable area and delivering a total annual passing rent of GBP428,936, equating to an average rent of GBP5.85 per sq ft.
The acquisition marks a further step forward in the Company achieving its goal of becoming a 100 per cent MLI business by 2022 and is the Company’s third MLI acquisition to complete since the start of the Coronavirus pandemic. Earlier this month, Stenprop completed the purchase of Bowthorpe Park Industrial Estate in Norwich, UK for GBP19.6 million, reflecting a net initial yield of 6.35 per cent. As a result of these acquisitions, MLI assets now constitute 60 per cent of Stenprop's portfolio, based on asset values at 31 March 2020.^
Will Lutton, Head of Investment at Stenprop, commented:
“St Andrew’s Industrial Estate is the latest example of our ability to source attractive investment opportunities in locations underpinned by favourable demand supply dynamics. Our knowledge of the Glasgow market coupled with the vacancy provides a compelling opportunity to capture the estate’s reversionary potential and improve the rental tone, leveraging our increasingly relevant and proprietary leasing platform, industrials.co.uk.
“Current indications are that the strong occupational demand for urban warehouse space that we are seeing, led by e-commerce penetration, is set to continue. This acquisition maintains our transactions momentum since the Coronavirus pandemic and is another step forward in pivoting our entire portfolio towards the MLI sector.”
This announcement is voluntary and for information purposes only.