Stenprop sells Trafalgar Court in Guernsey in GBP55m deal
Stenprop, a UK multi-let industrial (MLI) property company, has sold Trafalgar Court, its Guernsey office building to ARC Global (Guernsey) Holdings Limited for a consideration which values the Property at GBP55 million.
The buyer is a wholly owned subsidiary of Global Net Lease (NYSE: GNL), a real estate investment trust that focuses on acquiring and managing a globally diversified portfolio of commercial real estate properties.
The Disposal further progresses Stenprop’s strategy to become a 100 per cent UK MLI business by March 2022, increasing its MLI portfolio from 83 per cent to 92 per cent of its total portfolio based on asset valuations as at 31 March 2021.
Totalling 10,564 sq m of gross lettable space, Trafalgar Court is located in St Peter Port, Guernsey. The weighted average rental is currently GBP419.2 per sq m.
Paul Arenson, CEO of Stenprop, says: “The disposal of Trafalgar Court is an important milestone for Stenprop. We remain on track to transition to a 100 per cent focused UK MLI business by March 2022. The proceeds will be deployed into attractive MLI opportunities in the UK and takes the percentage of MLI in our portfolio to over 90 per cent. We have approximately £45 million of non-MLI assets left to sell and look forward to announcing further acquisitions and disposals. The sale of Trafalgar Court and the repayment of the associated short-term debt also paves the way for our proposed move to the Premium Segment of the Main Market of the London Stock Exchange between now and 31 March 2022.”
The Disposal was undertaken via the sale of all the issued share capital of a special purpose vehicle wholly owned by Stenprop. The existing bank debt of cGBP28 million in relation to the Property was repaid at completion. Net proceeds from the Disposal after deduction of anticipated transaction costs and property taxes are expected to be cGBP25.6 million. Stenprop intends to use these proceeds to fund further MLI acquisitions in the MLI sector.