Acquisition

25 August 2011

Hansteen Holdings PLC

("Hansteen" or, the "Company", the "Group")

HANSTEEN TO ACQUIRE GERMAN INDUSTRIAL PROPERTY FOR €15 MILLION

Hansteen Holdings (LSE: HSTN), the UK and Continental European property investment company, announces that it has notarised two purchases of a substantial multi-let industrial estate and a modern car dealership investment located in Hilden, Germany, for a total acquisition cost of up to €14.9 million, representing a net initial yield of 11.3%. The vendor is a Company within the St Martins Property Group.

The first purchase comprises a multi-let industrial estate with a lettable area of 26,514 sq m and a current rent of €1,385,605 per annum; tenants include Cable & Wireless and Verizon. Approximately 4,000 sq m, in three industrial units, with a combined lettable value of around €240,000 per annum, is currently vacant. The total acquisition cost is €11.8 million an initial yield of 11.4% and a reversionary yield of 13.7%.

The second purchase comprises a Mercedes car dealership constructed in 2005 and let at a current rent of €335,000 per annum, on a lease to 2025 with no breaks. Hansteen has agreed to pay €2.95 million for this investment; however, the existing tenant has a pre-emption right which entitles the tenant to purchase the property for the same price within a month of having received formal notice about the acquisition. Accordingly this property may or may not be finally acquired by Hansteen.

Hilden is centrally located in the Ruhr region, 10 km south of Düsseldorf and 35 km north of Cologne. The site has easy access to the A59, A46, and A3 motorways, which connect all the major cities in the Ruhr region and is located in the main industrial area of Hilden, an area characterised by many logistics companies and car dealers.

Ian Watson, Joint Chief Executive of Hansteen commented: "We are absolutely delighted with these purchases which give Hansteen everything it normally looks for. Good quality property with a high yield and vacancy which should enable us to grow income and the capital value over time. We already have 14 assets within the region, which gives us a good insight into the current occupier market and gives us substantial management efficiencies."

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Notes to Editors:

HANSTEEN HOLDINGS PLC

Hansteen Holdings PLC (LSE: HSTN) is a European industrial REIT that invests in properties with high yields, low Capital costs and opportunity for value improvement across the Netherlands, Germany, Belgium, France and the UK.

Founded by Morgan Jones and Ian Watson the Company listed on AIM in November 2005 raising £125 million. In 2009, it raised a further £200.8 million by way of a Placing and Open Offer and moved to the Official List, converting to a REIT shortly thereafter. In April 2011, the Company raised a further £150 million by way of a Placing and Open Offer.

Hansteen has a portfolio of some 188 assets with a value of around £780.1 million.