Hansteen buys UK industrial units

Property investor Hansteen has agreed to pay £42.25 mln (€50 mln) for the ‘Spice’ portfolio of 17 industrial estates in England and Wales being sold by Legal & General’s Industrial Property Investment Fund.

Mark Ovens, UK director of Hansteen, said the firm was attracted to the portfolio, ‘at a point in the occupational market which is widely being interpreted as a point of inflection. Within our own portfolios, we are seeing new levels of confidence in occupiers and their decision making, a situation being recognised by valuers’.

The deal includes 137 units, totalling 75,300 m2 across six estates in the South East of England, five in the Midlands, four in the North West, one in the South West and one in Wales. The net initial yield of 7.7% will rise to 8.25% on contracted rents

The deal is being partly funded by a £25 mln (€30 mln) increase in Hansteen’s HPUT ll facility, jointly provided by Royal Bank of Scotland (50%) and Barclays (50%).

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