Hansteen acquires Dutch property loan at 51% discount

UK REIT Hansteen Holdings has purchased a loan secured against a portfolio of mainly multi-let light industrial properties in the Netherlands from UniCredit Bank for €42 mln, representing a 51% discount to the loan.

Hansteen paid for the loan from existing cash resources.

The current borrower, Lancelot Land, is in breach of the loan and Hansteen said that it intends to work with ING, which holds the other 50% of the debt against the portfolio, to deliver a solution which will 'maximise returns for all parties'.

The whole portfolio, against which the loan is secured, extends to more than 370,000 m2 across 40 estates in the Netherlands, with the majority in the core Randstad area. The gross annual rental income of the portfolio is more than €15 mln and the current vacancy rate is 20% which provides a significant opportunity to add value. The portfolio was originally assembled by BGP Investment.

Ian Watson, joint chief executive of Hansteen, said: 'Whilst the Benelux property market continues to be difficult, we have seen a recent increase in investment demand for these types of assets. This portfolio is predominantly good quality multi-let light industrial estates which have suffered from being in a distressed situation over the last two years. The purchase price reflects a significant discount to the value of the loan and, we believe, the value of the underlying property assets.'