Stenprop’s Paul Arenson on why he remains bullish on the UK amid Brexit fears

Amidst the ongoing Brexit turmoil, property investment group Stenprop has emerged as a standout performer in the real estate industry. The company reported acquisitions worth 24.9 million pounds for the financial period ended September 30, 2018, and declared a final interim dividend of 3.37 pence per share. In an exclusive interview with CNBC Africa, CEO Paul Arenson shared insights into why he remains bullish on the UK market despite Brexit fears. Arenson attributed Stenprop's resilience to its strategic focus on multilet industrial assets, a sector he deems to be relatively Brexit-proof. He highlighted the transformative impact of internet and communications technology on the real estate industry, noting that certain sectors are thriving while others are facing challenges. Multilet industrial, in particular, has seen a surge in demand as businesses leverage technology to optimize their operations. While the UK remains the primary focus for Stenprop, Arenson also discussed the company's operations in Switzerland and Germany. He expressed confidence in the performance of these markets but emphasized the shift towards consolidating their portfolio to concentrate on multilet industrial assets in the UK. By divesting from non-core assets and enhancing their UK portfolio, Stenprop aims to establish itself as a leading player in the multilet industrial segment. One key highlight from the interview was Stenprop's successful lease renewals, with the average rent increasing by 17% for new leases compared to previous agreements. Despite challenges posed by Brexit uncertainty, Arenson outlined a strategic roadmap for sustained growth, targeting a transition to 100% multilet industrial portfolio in the coming years. The company plans to acquire an additional 75 million pounds by March 2019 and aims to reach 100% multilet industrial exposure by the following year. Arenson also touched upon the potential impact of a Brexit deal on Stenprop's operations, highlighting the current climate of uncertainty as a hindrance to business decisions. He emphasized the importance of clarity and stability for businesses, stating that a deal would provide much-needed certainty for companies to resume normal operations and make long-term commitments. In conclusion, Stenprop's forward-looking strategy and commitment to capitalizing on the growing demand for multilet industrial spaces position the company as a resilient player in the UK real estate market. Despite the prevailing Brexit narrative, Stenprop's proactive approach to portfolio optimization and strategic acquisitions underscores its confidence in weathering economic uncertainties and driving sustainable growth in the years to come.