11th Feb 2014 09:42
LONDON (Alliance News) - Hansteen Holdings PLC Tuesday said it has exchanged contracts to acquire a portfolio of 17 industrial estates across England and Wales for GBP42.3 million.
In a statement, the property investor said it is to acquire the properties on behalf of the Hansteen UK Industrial Property Unit Trust ll.
The initial yield will be 7%, rising to 8.25% on contracted rents.
The deal will be part funded by a GBP25 million increase in Hansteen's existing facility with Barclays PLC and Royal Bank of Scotland Group PLC.
Hansteen said the vendor is Legal & General's Industrial Property Development Fund and expects the deal to completed by the end of February.
Hansteen launched HPUT ll, in May 2013, with GBP107 million of equity, one third of which was provided by Hansteen and the balance by Aviva Investors Real Estate Multi-Managers.
"We were attracted to the Spice portfolio by a combination of the quality of assets and the timing - at a point in the occupational market which is widely being interpreted as a point of inflection. Within our own portfolios, we are seeing new levels of confidence in occupiers and their decision making, a situation being recognised by valuers," Mark Ovens, director (UK), said in a statement.
Hansteen shares were Tuesday quoted at 114.00 pence, up 0.70 pence, or 0.6%.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
HSTN.L