Hansteen buys EURO 26 million German logistics portfolio Hansteen Holdings (LSE: HSTN), the UK and Continental property investment company, announces that it has completed the purchase of a portfolio of six logistics properties in Germany, from Dexus Funds Management Ltd., for EUR 26 million. The purchase, which was funded from existing cash resources, reflects an initial yield of 13.77%.
The properties, located in Langenweddingen, Friedewald, Knetzgau, Unna and Langenfeld (two), are all good quality distribution warehouses suited to modern occupational requirements, all with excellent motorway connections and total 127,000 sq m of built space. The price represents a capital value per sq ft of just GBP15.25, considerably less than 50% of replacement costs. The portfolio is 95% occupied with a current rent roll of EUR 3.58 million, representing a low average rent of EUR 2.90 per sq m.
Commenting on the acquisition Ian Watson, Joint Chief Executive of Hansteen, said: 'This is a slightly unusual transaction for Hansteen given the high occupancy and the possibility that one or two of the tenants will vacate over the next year or two. However, we believe the portfolio represents fundamentally great value on a vacant possession basis. The fact that in addition it combines a high running yield, off low rents, with potential to add value through asset management initiatives and development opportunities made it irresistible.'
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 GBP125 million. In 2009, it raised a further GBP 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 GBP150 million by way of a Placing and Open Offer. As 31 December 2011, Hansteen had a portfolio of some 277 assets with a value of around GBP 961 million.
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