Launch of Second Industrial Fund

28 May 2013

Hansteen Holdings PLC

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

HANSTEEN INCREASES BUYING POWER WITH LAUNCH OF SECOND £200 MILLION INDUSTRIAL FUND

Hansteen Holdings PLC (LSE: HSTN), the investor in continental European and UK real estate, announces the launch of the Hansteen UK Industrial Property Unit Trust II ("HPUTII" or the "Fund"). The Fund has been seeded with approximately £49 million of property and will have the capacity to invest up to approximately £200 million in UK industrial property.

The Fund has been launched with £107 million of equity; one third provided by Hansteen and two thirds from clients of Aviva Investors Real Estate Multi-Managers (REMM). The Fund is the second of its type to be launched and co-invested by Hansteen and follows the success of The Hansteen UK Industrial Property Unit Trust launched in July 2009, which is now fully invested, in which Aviva Investors (REMM) are also unit holders. 

Ian Watson, Joint Chief Executive of Hansteen said: "We are delighted to have entered into this venture with Aviva Investors, with whom we already enjoy a successful relationship as a co-investor in the first fund. The quantum of their investment is testament to their confidence in us as a partner who can deliver performance. They share our view that the current market is presenting real opportunities for well capitalised investors. We look forward to working with Aviva Investors as we exploit those opportunities over the life of the Fund."

The Fund, which will be focused on both high-income generation as well as growth in net assets, is targeting annual returns, after fees and expenses, of 12-15%. Net income will be distributed quarterly. The life of the Fund will be six years and will be prudently geared to a maximum of 45% as equity is deployed. The Fund has a debt facility in place with Royal Bank of Scotland.

As property advisor, Hansteen will receive asset management fees and a performance based fee, in addition to the return on its investment.

Morgan Jones, Joint Chief Executive of Hansteen added: "Gaining wider exposure to the industrial property cycle, through the formation of limited life funds with third party equity, has proven successful for Hansteen to date.

HPUTII will be Hansteen's vehicle for investing in UK industrial property with a value of £15 million or less, or portfolios under £30 million, for the earlier of either the Fund becoming fully invested or in 18 months time."

James Havery, Director UK commented: "As a business, we have completed on over £500 million of transactions since re-entering the UK market in 2009. Our unrivalled track record and established UK platform mean we are well placed to source and acquire stock. We already have new acquisitions progressing and believe the following 18 months will provide compelling opportunities to acquire fundamentally good property, at very attractive prices."

Alistair Dryer, Senior Fund Manager at Aviva Investors (REMM) said: "This is a very exciting opportunity to invest alongside our partners Hansteen at what we believe is an opportune point in the investment cycle for our clients.''

John Gellatly, Head of Aviva Investors REMM Europe added: "It is a pleasure to continue working with the individuals now at Hansteen and previously with Ashtenne, who we have known for several years and who we rate highly as a management team in this sector."

Aviva Investors is one of the largest global real estate multi-manager investors with more than £5.6 billion invested through multi-manager strategies. It invests worldwide and on behalf of leading corporations, public pension funds, and other institutional clients and has built one of the longest track records in the industry.

 For more information:

Morgan Jones / Ian Watson Jeremy Carey / Amy Walker

Hansteen Holdings PLC Tavistock Communications

Tel: 020 7408 7000 Tel: 020 7920 3150

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.

At 31 December 2012, Hansteen had total property under management of some 282 assets with a value of £1 billion.

www.hansteen.co.uk

AVIVA INVESTORS

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £274 billion at 31 December 2012.

Aviva plc

* Based on Aviva plc Annual Report and Accounts 2012.