Hansteen acquires £53.7m mixed use UK portfolio

6 August 2018

HANSTEEN HOLDINGS PLC

("Hansteen" or, the "Company")

Hansteen acquires £53.7 million mixed use UK portfolio

Hansteen (LSE:HSTN), the industrial property investor, announces that it has exchanged contracts to acquire a mixed-use portfolio of 34 properties. The properties are located throughout the UK with a focus on the North West and the West Midlands for £53.7 million, reflecting a net initial yield after costs of 9.15% and a low capital value of £41 per sq ft. The vendor is St Modwen Properties PLC and the purchase will be funded with current cash resources and a drawdown under the revolving credit facility from the Royal Bank of Scotland.

The portfolio provides 1.4 million sq ft of accommodation, let to more than 200 tenants producing a current rent of £5.25 million per annum. Approximately 85,000 sq ft, 6.1%, is vacant and the weighted average unexpired lease term (WAULT) is 3.10 years to expiry and 2.75 years including break options. There is a diverse tenant base which includes Toolstation Limited, Pirelli UK Tyres Limited, Staffordshire County Council and British Steel Limited.

Morgan Jones and Ian Watson, Joint Chief Executives of Hansteen, commented: "This portfolio fits perfectly with our buying criteria. There are a number of asset management opportunities and initiatives across the portfolio which provide us with the opportunity to increase the rent roll and create additional value".

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HANSTEEN HOLDINGS PLC

Hansteen Holdings PLC (LSE:HSTN) is an industrial property REIT that invests in properties, across the UK, with high yields, low capital costs and opportunity for value improvement.

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.

In June 2017, the Company sold its German and Dutch portfolios for €1.28 billion and is now predominantly UK based. In February 2018, it disposed of the Industrial Multi Property Trust portfolio for £116 million and in March 2018 proposed a return of £145 million of capital to its Shareholders.

At 31 December 2017, Hansteen had total property under management of some 325 assets with a value of £818.1 million.

PORTFOLIO

The principal assets in the portfolio are:

Blackburn - Evolution Park, Haslingden Road, Lancashire, BB1 2F

Rugby - GE Energy, Boughton Road, CV21 1BU

Glasgow - Springburn Depot, 79 Charles Street, G21 2PS

Preston - Old Mill Industrial Estate, School Lane, Bamber Bridge, PR5 6SY

Manchester - Lankro Way, Eccles, M30 0L

Manchester - Edge Lane, M11 1D

Birmingham - Tyburn Trading Estate, Ashfold Farm Road, B24 9QG

Darlington - South Works, Whessoe Road, DL3 0RA

Stoke-on-Trent - Queensway Industrial Estate, Longbridge Hayes Road, ST6 4DS

Liverpool - Brasenose Road, L20 8H