22nd Dec 2011 07:00
22 December 2011
Hansteen Holdings PLC
("Hansteen" or, the "Company")
HANSTEEN ACQUIRES UK INDUSTRIAL PORTFOLIO FOR £150 MILLION
Hansteen Holdings plc and the Hansteen UK Industrial Property Limited Partnership ("the Fund") have completed the acquisition of the entire property assets from The Spencer Group of Companies for £150 million gross (£147.1 million net). Hansteen, the investor in UK and Continental European property, is manager of, and co-investor in the Fund.
The portfolio comprises some 88 assets totalling 4.1 million sq ft of predominantly industrial property located across the UK.
Hansteen has acquired 44 of the assets with a current rent roll of £6.0 million (after deduction of head rents) and a vacancy rate of 41.6% for £75.2 million (gross), representing an initial yield of 8.0%, or 8.51% excluding development land, satisfied by £33.9 million of cash from existing resources and £41.3 million of new debt facilities provided by Lloyds Banking Group.
The Fund has acquired 44 assets, with a current rent roll of £6.4 million (after deduction of head rents) and a vacancy rate of 17.2%, for £74.8 million (gross), representing an initial yield of 8.5%, utilising existing and new debt facilities provided by Royal Bank of Scotland.
Following this transaction, assuming prudent gearing of 50% LTV, Hansteen has firepower of approximately £300 million for further acquisitions. The Fund is now effectively fully invested with gross assets of £166 million and debts of £76 million.
The overall portfolio comprises:
- | 4.1 million sq ft across 68 freehold; 13 long leasehold; and 7 part freehold, part long leasehold properties. Hansteen have acquired 2.4 million sq ft and the Fund has acquired 1.7 million sq ft. |
- | 65 properties in England (76.3% by value); 22 in Wales (22.0% by value); and 1 in Scotland (1.7% by value). |
- | 37 acres of development land, all of which has been acquired by Hansteen. |
- | 87.9% by value in industrial; 6.2% in offices; 3.0% hybrid units and 2.9% in development land. |
- | Net annual rent receivable of £12.4 million after deduction of head rents equating to an overall initial yield of 8.3% (8.51% excluding development land). |
- | Current vacancy rate of 31.7% with a total ERV of over £16.4 million per annum. |
Morgan Jones, Joint Chief Executive of Hansteen commented: "The portfolio is highly compatible with Hansteen's intensive management approach and the team's experience across the UK market. It has strong fundamentals and a high vacancy rate providing a great opportunity to create significant added value through improving occupancy and imposing our own approach."
Ian Watson, Joint Chief Executive of Hansteen, added:"This substantial purchase completes the Fund and will materially add to Hansteen's earnings and future growth potential without significantly reducing our available firepower."
For further information:
Morgan Jones / Ian WatsonHansteen Holdings PLCTel: 020 7408 7000 | Jeremy Carey / Amy WalkerTavistock CommunicationsTel: 020 7920 3150
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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.
Related Shares:
HSTN.L