UK industrial REIT Hansteen Holdings has completed the acquisition of a portfolio of seven multi-let offices and a portfolio of five industrial estates on behalf of its UK Industrial Property Unit Trust II.
UK industrial REIT Hansteen Holdings has completed the acquisition of a portfolio of seven multi-let offices and a portfolio of five industrial estates on behalf of its UK Industrial Property Unit Trust II.
The combined purchase price of £36.2 mln (€46 mln) reflects a yield on passing rents of 9.0% gross of acquisition costs and an overall capital value of £73.80 per sq ft.
The office portfolio comprises seven multi-let offices, predominantly located in the south east of England, the largest of which is in Woodford Green. The other assets are located in Witney, Bury, Coventry, Chesham, Stevenage and Waterlooville.
The portfolio extends to 286,091 sq ft (2,700 m2) of which 14.3% is vacant. The passing rent roll of £2.6 mln a year from the 120 tenants reflects an average rent of £10.50 per sq ft.
The industrial portfolio comprises four estates in South Wales and one in Narborough, Leicestershire. The portfolio is a total of 203,969 sq ft with a low vacancy of 4.0% and a passing rent roll of £0.7 mln.
Hansteen launched HPUT II in May 2013 with the capacity to invest up to £200 mln of which £107 mln of equity was subscribed, one third by Hansteen and the balance by Aviva Investors Real Estate Multi-Managers. Following these acquisitions HPUT II will have a total of £165 mln of assets.
James Havery, director UK of Hansteen, commented: 'As we approach the end of HPUT II's investment period in March 2015, these acquisitions are both timely and accretive. We have further acquisitions under offer but still have firepower for assets that demonstrate strong property fundamentals and to which we can apply our particular skill set.'
The purchase comes hot on the heels of Hansteen's sale of its 2009-vintage UK property fund - which focused on distressed assets and bank sell-offs - for a total of £146 mln (€187 mln) in two transactions.
All but one of the 42 assets held by Hansteen UK Industrial Property Unit Trust (HPUT) were acquired by a fund advised by London-based Brockton Capital in a partnership with UK private property company Dunedin Property for £110.5 mln.
A separate 50-50 joint venture between Brockton Capital and Hansteen acquired Saltley Business Park in Birmingham for a net price of £35.6 mln.