Hansteen Holdings PLC (LSE: HSTN), the UK and Continental European property investment company, announces that, on behalf of Hansteen UK Industrial Property Unit Trust II (“HPUT II”), it has completed the acquisition of a portfolio of seven multi-let offices and a portfolio of five industrial estates.
The combined purchase price of £36.2 million reflects a yield on passing rents of 9.0% gross of acquisition costs and an overall capital value of £73.80 per ft² (approx. €93 million).
The office portfolio comprises seven multi-let offices, predominantly located in the south east of England, the largest of which is in Woodford Green, less than half a mile from the interchange of the North Circular and M11. The other assets are located in Witney, Bury, Coventry, Chesham, Stevenage and Waterlooville. The portfolio extends to 286,091 ft² (26.570 m²) of which 14.3% is vacant.
The industrial portfolio comprises four estates in South Wales and one in Narborough, Leicestershire, close to Junction 21 of the M1. The portfolio is a total of 203,969 ft² (18.859 m²) with a low vacancy of 4.0%.
Hansteen launched HPUT II in May 2013 with the capacity to invest up to £200 million (€255 mln) of which £107 million (€136 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 approximately £165 million (€210 million) of assets.
James Havery, Director UK of Hansteen, commented: "Our regional network will incorporate the assets into their respective portfolios and we expect to see early rental performance as a result. 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."