Stenprop completes Euston House agreement
Stenprop completed the sale of the Euston House office building in one of the most lively areas of London for € 111.2 million.
The sale agreement of the Euston House office building, which is expected to be completed for a while, is completed by the company. The company has made a strategic plan by becoming the K multi-let industrial (MLI) real estate company that completes its activities in sustainability and increased income.
This strategy shows that Stebprop intends to sell its non-MLI assets in the next few years and use sales revenues to build a focused MLI company.
Paul Arenson, CEO of Stenprop commented: “This is a significant sale for Stenprop, as Euston House is a material asset representing more than 10% by value of our portfolio. Being our last remaining central London office investment, it completes our divestment from the sector. The sale took place at a value of €111.2m (£95m) compared with the last reported independent valuation of €94.24m (£80.5m), which was used to determine the September interim NAV of 142 pence per share.
He added ıt also ensures that Stenprop will meet its stated milestones for the financial year ending 31 March 2019 of reducing its loan-to-value ratio to below 45% and increasing the overall MLI percentage of the portfolio to above 40%. Most significantly, the sale provides cash resources to fund additional MLI purchases in the financial year ending 31 March 2020, during which period Stenprop intends to reduce leverage further to below 40% and to acquire further MLI property so that MLI represents at least 60% of our portfolio by 31 March 2020.”
Sevdenur Demir / [email protected]