Stenprop (STP) has sealed its transformation into a pure play investor in estates of smaller, multi-let business units with a name change to Industrial Reit.
The £541m real estate investment trust (Reit) has for the past three years been snapping up assets in the unglamorous end of the industrial property sector since deciding to refocus the portfolio under chief executive Paul Arenson and managing director Julian Carey.
To reflect the offloading of its London offices and prestige buildings in Europe, the Guernsey investment company will become the Industrials Reit and trade under the ticker ‘MLI’ from 21 September.
The fund, which rents spaces to well-known brands such as Greggs, Pirelli, and Screwfix, made its latest acquisition at the end of August, purchasing two industrial parks in separate transactions for a total consideration of £15.9m.
It bought an industrial park in Huddersfield and a portfolio of five multi-let industrials located across the UK. The combined purchase price was the equivalent of a net initial yield of 7.2% and a capital value of £64 per square feet.
Numis Securities analyst Priyesh Parmar said multi-let industrials account for 92% of the portfolio, with a plan to be 100% transitioned by March 2022.
‘The name change ensures the company’s name reflects this investment strategy and provides a consistency of experience for investors and users of the customer-facing industrials brand,’ he said.
‘It also adheres to an increasingly prominent naming convention from listed real estate companies that have a strategic focus on a single asset class.’
The decision to focus on industrials has paid off this year, with the shares up 39.6% to stand on a 23% premium to net asset value (NAV). This is in contrast to the 20% discount below NAV at which the stock traded when the former South African property company listed in London.
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