Hansteen acquires German industrial portfolio for EUR 330m

UK and Continental European properlty investor Hansteen Holdings has signed a conditional agreement to acquire a German industrial property portfolio from HBI Sarl and HBI Delta Sub Sarl for an effective acquisition cost of around EUR 330 mln. The deal will be financed from around EUR 70 mln in existing cash resources and EUR 260 mln in debt.

The portfolio comprises 34 freehold properties across Germany offering around 861,010 m² of leasable area on 205 hectares. The properties are let to occupiers for industrial, workspace and office use. The net annual rent receivable amounts to EUR 30.3 mln per annum, equating to an initial yield of 9.2%. The properties were originally acquired for around EUR 439 mln. The transaction is subject to shareholder approval at a General Meeting to be held on 1 April 2010.

Ian Watson, Joint Chief Executive of Hansteen, commented: 'We know this portfolio well; it was acquired during the time we were assembling our German portfolio and the two are highly compatible. Our management approach will provide an opportunity to create significant added value, particularly by improving occupancy levels.' Morgan Jones, Joint Chief Executive of Hansteen added: 'This portfolio has recently suffered significant capital constraints. We believe that a new asset management strategy could add further value. These opportunities, coupled with a new five year loan on very beneficial terms, make this transaction particularly attractive to us.'