Stenprop Limited Disposal of Berlin Retail Park for EUR27.0M (1242T)
16 July 2020 - 4:05PM
UK Regulatory
TIDMSTP
RNS Number : 1242T
Stenprop Limited
16 July 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
16 July 2020
STENPROP ANNOUNCES DISPOSAL OF NEUCÖLLN CARRÉE RETAIL PARK,
BERLIN FOR EUR27.0M
-Sale of the asset is a further step forward for UK Multi-let
Industrial focussed strategy-
Stenprop, the UK multi-let industrial ("MLI") property company,
announces that it has exchanged contracts on the sale of its long
leasehold interest in the Neucölln Carrée retail park in Berlin,
Germany to Hamburg-based real estate investment manager Union
Investment, acting on behalf of one of its institutional property
funds for EUR27.0 million. The disposal price reflects a EUR3.6
million^ premium to the 31 March 2020 book value.
Providing 13,364 sqm of gross lettable space the 14-unit retail
park is anchored by an Edeka supermarket and provides a range of
other convenience-led retail. The weighted average rental is
currently circa EUR107 per sqm.
The disposal is in line with Stenprop's strategy to become a
100% UK MLI business via the sale of all non-core properties in its
portfolio and the reinvestment of the proceeds into UK MLI
properties. As at 31 March 2020, approximately 58% of Stenprop's
portfolio was made up of UK MLI estates. On completion of the
disposal, assuming no further purchases of MLI estates, the MLI
percentage of the portfolio will rise to 60%, based on Stenprop's
total property asset valuations as at 31 March 2020.
Net proceeds from the sale after deduction of anticipated
transaction costs, repayment of debt and property taxes is expected
to be EUR15.5 million. Stenprop intends to use the net proceeds
from the disposal to fund further acquisitions in the MLI
sector.
Completion of the disposal is expected to occur at satisfaction
of the last conditions precedent described below and by no later
than 15 January 2021, following which the disposal price will be
paid to the seller. Failure to complete due to a default by the
purchaser will result in the seller retaining the deposit amount of
EUR 2.7 million which was paid by the purchaser into an escrow
account on 15 July 2020. Either party may terminate the disposal
agreement should the property suffer significant structural damage
resulting in rent losses exceeding 40% over a period of six months
or should certain major tenants become insolvent prior to
completion. The seller believes the chances of these events
occurring to be remote given the trading history of these
tenants.
The disposal agreement contains market standard representations
and warranties for a deal of this size and nature. A limited
12-month guarantee capped at EUR540,000 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.
Completion of the disposal is subject to the following
conditions precedent:
-- approval of the disposal by the owner of the freehold;
-- registration of a priority notice in favour of the purchaser
in the land register; and
-- the current lender having deposited cancellation documents
for the existing land charges on the property.
Paul Arenson, CEO of Stenprop, commented:
"The sale of this asset at an attractive premium to valuation is
a great result for the business and enables us to continue to
deliver our strategy and focus on becoming the leading Multi Let
Industrial business in the UK. 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 EUR23.4 million at 31 March 2020 by
Carsten Meinhardt and Anke Muller of Jones Lang LaSalle Proprietary
SE, who is an external independent valuer registered as a
professional in terms of the Property Valuers Profession Act, No.47
of 2000 and with the Royal Institution of Chartered Surveyors. The
net operating profit attributable to the property for the year
ended 31 March 2020 was EUR1,094,249. This information has been
extracted from Stenprop's audited results for the year ended 31
March 2020 which were prepared under International Financial
Reporting Standards.
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. This
disposal is classified as a category 2 transaction in terms of the
JSE Listings Requirements. Accordingly, it is not subject to
approval by shareholders.
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson (paul.arenson@stenprop.com)
Julian Carey (julian.carey@stenprop.com)
James Beaumont (james.beaumont@stenprop.com)
Numis Securities Limited (Financial Adviser) +44(0)20 7260
1000
Hugh Jonathan
Vicki Paine
FTI Consulting (PR Adviser) +44(0)20 3727 1000
Dido Laurimore
Richard Sunderland
Richard Gotla
Neel Bose
Stenprop@fticonsulting.com
Java Capital Trustees and Sponsors Proprietary Limited +27 (0)11
722 3050
(JSE Sponsor)
About Stenprop:
Stenprop is a UK REIT listed on the LSE and the JSE. The
objective of the Company is to deliver sustainable growing income
to its investors. Stenprop's investment policy is to invest in a
diversified portfolio of UK multi-let industrial (MLI) properties
with the strategic goal of becoming the leading MLI business in the
UK. For further information, go to www.stenprop.com.
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END
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