Hansteen Holdings PLC, the UK and Continental European property investment company, announces that it has purchased a loan secured against a portfolio of mainly multi-let light industrial property in the Netherlands from UniCredit Bank AG for €41.675 million, representing a 51% discount to the loan. The consideration will be satisfied from existing cash resources.
The current borrower, Lancelot Land BV, is in breach of the loan and Hansteen intends to work with ING, which holds the other 50% of the debt against the portfolio, to deliver a solution which will maximize returns for all parties.
The whole portfolio, against which the loan is secured, extends to more than 370,000 m² across 40 estates, in the Netherlands, with the majority in the core Randstad area. The gross annual rental income of the portfolio is more than €15 million and the current vacancy rate is approximately 20% which provides a significant opportunity to add value. The portfolio was originally assembled by BGP Investment Sarl.
Ian Watson, joint chief executive of Hansteen, said: “Whilst the Benelux property market continues to be difficult, we have seen a recent increase in investment demand for these types of assets. This portfolio is predominantly good quality multi-let light industrial estates which have suffered from being in a distressed situation over the last two years. The purchase price reflects a significant discount to the value of the loan and, we believe, the value of the underlying property assets.”
Source: Hansteen PLC