Stenprop Ltd. agreed to buy a portfolio of 25 multilet industrial properties and its management business, C2 Capital Ltd., in a deal valuing the businesses at £130.5 million.
The industrial properties, totaling a gross lettable area of roughly 2 million square feet, are located across the U.K. and are operated under the brand industrials.co.uk. The assets house more than 400 tenants.
The portfolio is being sold by Industrials UK LP which is owned by Industrials Investment Unit Trust, or IIUT, and Industrials UK GP LLC, or GP. Through two wholly owned subsidiaries, Stenprop is buying all the units in both IIUT and GP from Rebano Holdings BV and C2 Industrials LLP for £58 million, following which both IIUT and GP will become subsidiaries of the company. Stenprop will buy the shares in C2 Capital from Julian Carey for £3.5 million, funded by the issue of 3,270,500 Stenprop shares.
Carey is also expected to join the Stenprop board in due course.
The acquisition of the industrial portfolio is slated to be closed on June 30. Stenprop has paid a deposit of approximately £6.4 million and will pay the balance upon completion of the acquisition.
Stenprop will fund the acquisition from the proceeds from the sale of the Nova Eventis shopping center near Leipzig, Germany, and from the divestment of certain Swiss assets. The company also obtained €31 million of a 12-month bridging facility, in addition to an €8 million facility.