Hansteen Holdings PLC, the UK and Continental European property investment company, announces that it has completed four sales; one multi-let industrial estate and three development sites in Germany, for a total of €18.9 million, reflecting a gross initial yield of 7.3%.
The combined sales generate a profit of €5.6 million (42.6%) over the gross acquisition cost and €1.5 million (8.5%) over the 30 June 2014 valuation.
The Delta Forum estate, located in Ginsheim-Gustavsburg, has been sold, to a fund managed by CBRE Global Investors, for €15.95 million, with a passing rent of €1.3 million. The 20,257 m² multi-let industrial estate was developed in the late 1990s and was 99% occupied when sold. The estate houses key tenants such as Rhenus Logistics, MBS Medical Solutions and Indat Robotics.
Hansteen has also sold two plots of land located in Offenburg to Sunshine Real Estate GmbH and Saigak & Stern GbR for a total of €1.5 million, a profit of €0.3 million (29.3%) above the June 2014 valuation. Planning consent has been granted over the two sites allowing the purchasers to develop a petrol and gas station, as well as a car wash. In Langenfeld, Hansteen has sold an 18,300 m² site to a local private investor for €1.5 million, a profit of €0.9 million above the June 2014 valuation and €1.0 million over the gross acquisition cost. The land was purchased as a part of the Dexus portfolio, in June 2012.
Ian Watson, Joint Chief Executive of Hansteen, commented: “The market for and values of light industrial property in Germany are clearly improving, however, until recently, unlike in the UK, this sector has not been institutionally recognised. The sale of this estate to an institution for a core fund is a very significant step forward for the whole sector.”
Paul Rodger, Hansteen’s Germany Director added: “The Delta Forum property was purchased as part of the larger HBI portfolio acquisition in 2010 with a vacancy of 12% and, having moved the estate to virtually full occupancy, we identified the estate as ripe for sale. This sale, together with the others in Germany, highlights our regional teams’ ability to add value through intensive asset management.”