27th May 2015 06:51
LONDON (Alliance News) - Hansteen Holdings PLC on Wednesday said it has exchanged contracts on 13 multi-let and single-let industrial properties in Germany for EUR21.7 million.
FTSE 250-listed Hansteen has acquired the properties from Benelux Industrial Partners and expects the deal to complete in June. Ten of the properties are located in the North-Rhine Westphalia region with the remaining three situated in Eichenzell, Bingen and Hann Muenden.
The assets include a total lettable area of 99,355 square metres, of which 18% is currently vacant. The properties produce a combined passing rent roll of EUR2.8 million per year from a total of 66 tenants, reflecting a net initial yield of 12.86%. When fully let, the portfolio is expected to produce a rent roll in excess of EUR3.5 million per year, Hansteen said.
"This is exactly the sort of purchase Hansteen loves. It will be hard work and require some capital expenditure but the portfolio has a high yield and real capital upside," said Ian Watson, Hansteen's joint chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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