Stenprop sells Hamburg property for €160m as it refocuses on MLI assets

UK REIT Stenprop has agreed to sell the Bleichenhof mixed-use property in the centre of Hamburg to Projekt Palais Verwaltungs GmbH, a vehicle beneficially owned by three German pension funds specialising in the provision of pensions to members of the medical sector in Germany, for €160 mln.

The Bleichenhof property is the largest single asset in the Stenprop property portfolio, making up approximately 21% of the gross portfolio by value.It is a mixed-use property situated in the centre of Hamburg with a total lettable area of 19,500 m2 of which currently 94% is let, generating a contractual rent of €7.0 mln per annum.

The disposal is in line with Stenprop’s strategy to become a 100% UK multi-let industrial (MLI) business via the sale of all non-MLI properties in its portfolio and the reinvestment of the proceeds into UK MLI properties. As at 30 September 2019, approximately 44.6% of the Stenprop 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 56% calculated based on Stenprop’s total property asset value. Stenprop intends to use the net cash proceeds from the disposal to acquire additional UK MLI estates.

The transaction is expected to complete by 31 March 2020.

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