Stenprop, the UK multi-let industrial property company has exchanged contracts on the sale of its long leasehold interest in the Neucölln Carrée retail park in Berlin to Hamburg-based real estate investment manager Union Investment, acting on behalf of one of its institutional property funds.
The disposal price reflects a €3.6 mln premium to the 31 March 2020 book value.
The disposal is in line with Stenprop’s strategy to 100% focus on the UK via the sale of all non-core properties in its portfolio and the reinvestment of the proceeds into UK properties. As at 31 March 2020, approximately 58% of Stenprop’s portfolio was made up of UK estates. On completion of the disposal, assuming no further purchases, the companies portfolio will rise to 60% UK, based on Stenprop’s total property asset valuations as at 31 March 2020.
Providing 13,364 m 2 of gross lettable space the 14-unit Neucölln Carrée retail park is anchored by an Edeka supermarket and provides a range of other convenience-led retail. The weighted average rental is currently around €107 per m 2.
The disposal agreement contains market standard representations and warranties for a deal of this size and nature. A limited 12-month guarantee capped at €540,000 was provided by a company of the Stenprop group to the purchaser in respect of claims against and for liabilities of the seller under the disposal agreement.
Paul Arenson, CEO of Stenprop, said, ‘The sale of this asset at an attractive premium to valuation is a great result for the business.’
‘We continue to make good progress with the sale of our other German retail assets and expect to be in a position to report on further progress soon.’
The property was valued at €23.4 mln by Carsten Meinhardt and Anke Muller of Jones Lang LaSalle Proprietary SE, which is external independent
Stenprop has a primary listing on the main board of the Johannesburg Stock Exchange and a listing on the Specialist Fund Segment of the Main Market of the London Stock Exchange.
