Stenprop, the UK multi-let industrial (MLI) property company, has acquired a further 43,500 sq ft of MLI property across four adjoining warehouse units in Stretton Business Park, in Burton upon Trent.
The £3.75 million acquisition reflects a net initial yield of 6.9% and a capital value of £86 per sq ft.
The four modern units are fully occupied on leases delivering a total annual passing rent of £278,000, equating to an average rent of £6.39 per sq ft.
Will Lutton, Head of Investment at Stenprop, said: “Despite the challenging macroeconomic backdrop, the outlook for the multi-let industrial sector in the UK remains strong and we continue to be encouraged by the levels of demand for space across our portfolio, most notably through our Industrials.co.uk leasing platform.
“The sector is underpinned by a number of prevalent structural trends, led by e-commerce penetration, which have accelerated considerably as a result of COVID-19 lockdown. The income profile of these assets perfectly fits our strategy to grow contracted rent and is supported by the favourable local market dynamics.
“This acquisition is another step forward in our goal of transitioning our entire portfolio into MLI. We were close to acquiring this property prior to the Coronavirus outbreak in March 2020 and are pleased to have completed the acquisition on renegotiated terms three months later.”