Stenprop has reached an agreement to dispose of Euston House office property for €105m (£95m). The buyer is a wholly owned subsidiary of Eurazeo, in partnership with investment and asset management business Arax Properties. The transaction is in line with the company's strategy to become the leading multi-let industrial (MLI) business in the UK. The net proceeds from the deal will be used to reduce the short-term borrowings used to fund the purchase of the portfolio of MLI properties and to fund further acquisitions in the MLI sector.
Paul Arenson, CEO of Stenprop, commented: “The sale of Euston House is the last of our Central London offices to be sold and completes a sales programme of more than €239.5m (£216.6m) of Central London offices. The net proceeds will be used partly to reduce debt and partly to acquire additional multi-let industrial (MLI) assets in line with our transition strategy into a 100% UK MLI business. Following completion of the sale and before any further MLI acquisitions, the MLI component of our portfolio will represent more than 40% of our total assets and our overall debt will reduce to a loan-to-value ratio of less than 45%. This sale represents another important step in the implementation of our two-year strategic transition plan communicated to shareholders, which envisages being at 65% MLI by 31 March 2020 with no more than 40% overall leverage”.