Hansteen acquires property in Germany and the Netherlands for €53 million (DE/NL/UK)

Hansteen (AIM: HSTN) announces that it has acquired nine properties for, in aggregate, a total consideration of €53 million. These properties are currently generating annual rental income of €4.1 million (£2.9 million). Six of the properties acquired are located in Germany and three in the Netherlands. The properties in Germany and the Netherland were acquired for total considerations of €27.5 million (£19.6 million) and €25.5 million (£18.2 million) respectively.

In Kriftel, near Frankfurt, a good quality, well-located distribution building has been purchased. The property is occupied on a rolling lease by TNT, generating an annual income of €220,000 (£157,142).

Additionally, Hansteen has acquired a 3,590-m² light industrial and office building. Located in a commercial area of Aschaffenburg, the building is close to the A3 Autobahn and is approximately 45 kilometers from Frankfurt Airport. From its nine tenants, this property currently generates €227,935 (£162,810) of rental income annually.

Four opportunistic acquisitions for, in aggregate, approximately €23.25 million (£16.6 million) have also been completed. These include a modern, local shopping parade, two residential developments, in Halle and Magdeburg respectively, and a multi-let office building in Stuttgart.

The shopping parade, located 25 miles north east of Coburg in Lauscha, provides 863 m² of retail space in addition to 58 parking spaces. Currently, the property generates rental income of €83,037 (£59,312) per annum. The main tenant is Penny (Rewe-Group). This new purchase fits well within Hansteen's existing portfolio of retail property.

In Halle, Hansteen has acquired a 10,757-m² office and residential complex, which was built in the mid 1990's. At present, the annual rental income is €437,392 (£312,423). At current market level, the property would generate annual income in excess of €650,000 (£464,285) if fully occupied.

7,072 m² of residential space in Magdeburg has also been bought, comprising 17 multi-family houses, 122 recently modernized flats and two shop units. This acquisition is currently delivering income of €385,000 (£275,000) a year.

Hansteen has also completed the acquisition of Tower 99; a 7,800-m² refurbished multi-let office building in Stuttgart. This property's current income from annual rent is €854,000 (£610,000), which represents an average rent of €9 (£6.4) per month per m².

The Netherlands
Hansteen Ormix B.V., Hansteen's Dutch joint venture, which was established to acquire prime logistics properties, has completed the acquisition of three properties in the Netherlands.

A logistics complex in Bunschoten, Utrecht comprising 15,000 m² of lettable space [including 3,600 m² outside area] has been acquired. The complex is fully let to Polynorm Automotive B.V and Prefab Beton Vebo B.V. with an annual rent of €608,320 (£434,514).

In Almere, Hansteen Ormix has acquired a prime warehouse. Let for ten years on a full repairing basis to BAS group, the warehouse comprises 12,101 m² and has annual rental income of €962,500 (£687,500).

Additionally, a newly built logistics warehouse, comprising 6,892 m² of lettable space, has been acquired. Located in 's Heerenberg, close to the Dutch-German border, the property is generating rental income of €344,500 (£246,071) a year. The property is fully let on a ten-year lease to Lowland Fashion Investments, a clothes distributor.

Morgan Jones, joint Chief Executive of Hansteen, commented: "The markets in Germany and the Netherlands remain healthy and we believe that these opportunistic purchases represent good value."

Source: Tavistock

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