Hansteen inks purchase of 13 German industrial assets for €22m

European industrial REIT Hansteen Holdings has agreed to buy 13 properties across Germany for a total of €21.65 mln.

The industrial assets provide a total lettable area of 99,355 m2, with a vacancy level of 18.3%, at an initial yield of 12.9%. When fully let the portfolio is expected to produce an annual rent roll in excess of €3.46 mln.

Paul Rodger, Hansteen’s Germany director, said: ‘This high-yielding portfolio with its current vacancy rate and short average lease length provides significant potential to add value through active asset management.’

Ten of the properties are located in North Rhine-Westphalia, with the others in Eichenzell, Bingen and Hann Muenden.

Completion of the purchase is due in June 2015.

The deal was announced two weeks after Hansteen disposed of its Hansteen UK Industrial Property Unit Trust II, comprising 76 assets across England, Wales and Scotland, for £192 mln (€268 mln).

Hansteen Holdings has nearly 600 assets under management with a total value of £1.6 bn. The company invests in properties with high yields, low capital costs and opportunities for value improvement across Germany, the UK, the Netherlands, Belgium and France.