12th Nov 2014 08:32
LONDON (Alliance News) - Hansteen Holdings PLC Wednesday said it has completed the disposal of one multi-let industrial estate and three development sites in Germany for EUR18.9 million, a gross initial yield of 7.3%.
The combined sales generated a profit of EUR5.6 million over the gross acquisition cost, and EUR1.5 million over the valuation at the end of June, Hansteen said.
The Delta Forum estate in Ginsheim-Gustavsburg has been sold to a fund managed by CBRE Global Investors, for EUR15.95 million, with a passing rent of EUR1.3 million, Hansteen said.
The company also sold two plots of land in Offenburg to Sunshine Real Estate GmbH and Saigak & Stern GbR for a total of EUR1.5 million, a profit of about EUR300,000 above valuation at the end of June.
In Langenfeld, Hansteen sold an 18,300 square metre site to a local private investor for EUR1.5 million, a profit of about EUR900,000 above the June 2014 valuation and EUR1.0 million over the gross acquisition cost.
"The market for and values of light industrial property in Germany are clearly improving, however, until recently, unlike in the UK, this sector has not been institutionally recognised. The sale of this estate to an institution for a core fund is a very significant step forward for the whole sector," Joint Chief Executive Ian Watson said in a statement.
Paul Rodger, Hansteen's Germany director, said: "The Delta Forum property was purchased as part of the larger HBI portfolio acquisition in 2010 with a vacancy of 12% and, having moved the estate to virtually full occupancy, we identified the estate as ripe for sale. This sale, together with the others in Germany, highlights our regional teams' ability to add value through intensive asset management."
Hansteen Holdings shares were up 1.3% at 104.60 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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