Hansteen sees 'resilience' in continental markets

AIM-listed industrial property firm Hansteen has said it continues to see resilience in its principal markets of the Netherlands, Germany, Belgium and France. During the period from 31 December 2008 to 15 May 2009, Hansteen increased net occupancy, with a reduction in vacant space from 134,000 m² to 117,000 m² - a move from 13% vacancy to under 12% vacancy, over the period.

Hansteen said the reduction, together with the acquisition of the properties at Gross-Rohrheim and Friedberg in Germany and the profitable disposal of the property at Freising, also in Germany, increased the annualised rent roll from EUR42 mln to EUR 44 mln, resulting in a yield improvement from 8.4% to
8.6%.

Joint CEO Ian Watson said: 'While we are not unaffected by the credit crunch and economic downturn, we are pleased with the relative resilience of our continental European portfolio, coupled with the significant reduction in our cost of borrowing. We will continue to focus on maintaining and, where possible, increasing occupancy and income, both through a continued focus on continental Europe, and a return to the UK where more and more opportunities are presenting themselves.'

Hansteen also announced the sale of industrial unit, Rondweg 17 located at Wezep in the Netherlands, for EUR 1.9 mln. The property, which is currently only partially occupied, was sold above the most recent valuation and the original purchase cost. The purchaser cCompanjen Constructies, is expected to occupy the vacant unit.