Hansteen stakes out place in continental Europe

European property investor Hansteen has acquired £150 mln (EUR 221 mln) of property at yields in excess of 8% per annum since it was incorporated and listed on London Stock Exchange's AIM market in November 2005. Hansteen was established by Ian Watson and Morgan Jones who were previously founders and directors of Ashtenne Holdings.

In his introduction to the company's first annual report, Hansteen chairman James Hambro said Hansteen's strategy is based on the directors' experience in the UK property market where 'investment demand for industrial property has greatly increased over the past decade leading to lower yields, higher prices and a broader acceptance of the merits of the sector.' The same process is likely to be repeated in continental Europe.

Hambro said the 'board's strategy is to continue to build a substantial portfolio across western Europe over the next 18 months'. Hansteen announced a conditional placing of a further 53.43 million shares in late February to fund continued growth of the portfolio. The company has already made recent acquisitions in the Netherlands and Germany and there is a 'pipeline of new opportunities'.

Hansteen has a total of 21 properties valued at EUR 106 mln in the Netherlands. The portfolio covers 210,147 m² and provides total annual rent of EUR 8.4 mln. It has eight buildings in Germany worth EUR 57 mln. The portfolio comprises almost 67,000 m² and provides EUR 4.5 mln in rents annually. There are three properties in France, comprising 61,000 m². The properties are valued at EUR 21 mln and provide EUR 1.6 mln in annual rents. Hansteen has another two properties elsewhere, providing a total of 27,000 m². Valued at EUR 31 mln, the properties provide EUR 1.3 mln in annual rents.