Ashtenne fund appoints Hansteen as asset manager

Aviva Investors is to appoint Hansteen Holdings as asset manager on the Ashtenne Industrial Fund (AIF), replacing Warner Estate Holdings whose business went into administration.

Under the agreement, Hansteen will take a 26.3% stake in the AIF. This includes the purchase of Warner’s current 5.3% stake and a further investment of £42.5 mln (€50 mln) in new units.

Existing AIF unitholders will also have the opportunity to subscribe for a further £7.5 mln of new units through an open offer.

The proposal is subject to a vote requiring 75% approval at an extraordinary general meeting to be held on 12 September. Irrevocable letters of intent to support the proposals have already been received from 83% of unitholders eligible to vote at the EGM.

Hansteen will also become asset manager to AIF’s joint venture with the Homes and Communities Agency and Aviva Investors’ APIA Fund, which are also currently managed by Warner.

Aviva's decision follows the appointment of CCW Recovery Solutions as administrator of Warner and the planned sale of Warner's asset management business to Hansteen.

'We have carefully considered the options available to the fund given the financial position of Warner,' said Andrew Appleyard of Aviva Investors. 'The proposal for Hansteen to take over as asset manager and become a significant investor will provide a number of benefits, including continuity of property management services and the injection of £50 mln of new equity into the AIF on market terms.'