Stenprop, which seeks to become a specialised UK multi-let industrial (MLI) real estate investment trust, has added two assets to its portfolio.
The listed firm said it acquired Trinity Court at Brunel Road, Totton, from Catalyst Capital for £3.9m (€4.4m) and Carnfield Place at Walton Summit in Preston from Dixon Group for £3.55m.
The Trinity Court asset comprises 12 units, totalling 36,790sqft. Carnfield Place comprises eight units, totalling 59,505sqft. Both assets are fully let.
Julian Carey, the executive property director of Stenprop, said: “Both estates were acquired at well below replacement cost. Trinity Court is located in a region with very strong demand-supply dynamics, where we currently have no exposure.
Carey said Trinity Court attracts a wide range of occupiers and provides an opportunity for future rental growth along with a number of active asset management opportunities.
“Carnfield Place is a modern estate in a strong strategic location close to the motorway. The passing rents are low, given the high-quality of the units, and the estate benefits from large yards and longstanding tenants.”
Stenprop has taken the strategic decision that its objective to deliver sustainable, growing income to shareholders is best achieved by becoming a specialised UK MLI property company.
Last week, Stenprop moved a step closer with its plan with the disposal of seven Swiss assets.
Stenprop said its one remaining Swiss property in Lugano is undergoing substantial repositioning by the tenant, which is expected to be completed by October.
It will be marketed separately once all the works are complete and trading in the premises has been established, the company had said.
Stenprop said following the acquisitions of Trinity Court and Carnfield Place, MLI assets account for 26% of its portfolio.
MLI assets are expected to comprise around 60% to 65% of Stenprop’s total portfolio of properties by 31 March 2020.