Hansteen (LSE: HSTN), the investor in UK and continental European real estate, announces that it has exchanged contracts with The Industrial Trust to acquire a portfolio of multi-let industrial estates, for £60.0 million (approx. €73 million) gross, to be satisfied from existing cash resources and debt via a new facility with Royal Bank of Scotland.
The portfolio, which forms part of The Industrial Trust comprises 32 estates, totalling 1.6 million sq ft², located across the UK. It has a current annual rent roll of £6.1 million (approx. €7.5 million), a vacancy rate of 16% and an estimated rental value (ERV) of £6.7 million (approx. €8.2 million) per annum. The acquisition, which is due to complete on 31 January 2013, will show a net initial yield of 10.1%.
Knight Frank acted for The Industrial Trust.
Mark Ovens of Hansteen, commented: "The portfolio is highly compatible with our intensive management approach and the team's experience across the UK. It has strong fundamentals with a great opportunity to add value through improving occupancy and imposing our management approach via our network of regionally based asset managers."
Morgan Jones of Hansteen, added: "The acquisition has all the hallmarks of a classic Hansteen purchase having been sourced off-market and at a price that reflects a low capital value versus rebuild cost, a high and resilient running yield together with scope for real onward performance."
Stuart Heslop of Royal Bank of Scotland,added: "We are delighted to be supporting Hansteen with this acquisition. The UK is core to our Real Estate business and we have seen a number of industrial deals this year which demonstrate the resilience of this sector and its importance to the UK economy."
Hansteen has also completed the acquisition, notarised earlier this year, of Zeppelin Park, a 160 hectare industrial park located in western Berlin, for 11.3 million. The park contains 40,134 m² of logistics and light industrial space in 19 buildings let to 26 tenants, with a current vacancy of approximately 17%. The passing rent is 1.7 million per annum and the target rent when fully occupied will be in the order of 2 million per annum. Around 3 million of capital expenditure cost is expected to be required to achieve the target rent.
Ian Watson of Hansteen, commented: "This is our first purchase, from a special servicer, of a property that was part of a CMBS issue. It was complex and time consuming, and will require an investment of both skill and capital to fully realise the opportunities that it presents, however, we are confident that with that investment it will prove to be a great acquisition."