Stenprop eyes industrial expansion with Preston purchase
Stenprop, the UK multi-let industrial property investor, has acquired an industrial estate in Preston for £3.5m, in an off-market transaction from Dixon Group.
The purchase price reflects a net initial yield of 7.1%. Carnfield Place at Walton Summit comprises eight units, totalling 59,505 sq ft. It is fully let and produces a total annual passing rent of £270,600, which equates to an average rent of £4.55/sq ft.
Julian Carey, executive property director of Stenprop, said: “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.”
The acquisitions form part of Stenprop’s strategy of growing income for its shareholders by becoming a specialised UK multi-let industrial property company. Stenprop intends, over the next few years, to sell almost all of its non-industrial assets and utilise the sale proceeds to build a focused multi-let warehouse business.