3rd Nov 2014 07:18
LONDON (Alliance News) - Hansteen Holdings PLC Monday said it has sold the Hansteen UK Industrial Property Unit Trust, a UK multi-let industrial property portfolio, in two transactions for a total of GBP146.1 million after the deduction of rental top-ups.
In a statement, Hansteen said the 41 assets in the unit trust have been acquired by a fund advised by Brockton Capital LLP in a partnership with Dunedin Property for GBP110.5 million. A separate 50/50 joint venture between Brockton Capital and Hansteen has acquired Saltley Business Park in Birmingham for a net price of GBP35.6 million and Hansteen will continue to manage the site.
The sold unit trust was launched in July 2009 with GBP90 million of equity from Hansteen and five institutional investors. It now comprises 42 assets across England, Wales and Scotland with a combined floor area of 3.04 million square feet, a void rate of 9.65%, a passing rent of GBP10.0 million a year equating to average rents across the portfolio of GBP3.68 per square foot, and a contracted rent of GBP11.5 million. It also has 25.7 acres of development land.
The 41 assets sold within the fund have a passing rent of GBP7.6 million a year, a contracted rent of GBP8.5 million a year and a void rate of 13.5%, or 272,724 square foot. Saltley Business Park has a passing rent of GBP2.4 million a year, a contracted rent of GBP3.0 million a year and a void of 2.05% or 20,920 square foot.
"We launched HPUT to take advantage of the economic downturn which had resulted in high levels of distress throughout the sector. Acquisitions were made up to December 2011, predominantly from situations where banks were involved. Intensive asset management and some smaller sales followed before the final exit," said Mark Ovens, director UK of Hansteen.
"It is tremendously satisfying to have launched the Fund, met the investment return objectives and returned the capital to unitholders within the timescale envisaged at the outset," he added.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
HSTN.L