Hansteen Holdings the investor in UK and continental European real estate, announces that Hansteen Property Unit Trust ('HPUT') has acquired Saltley Business Park, Birmingham, from LPA Receivers acting for Lloyds Banking Group, for £23.285 million (approx. 27.1 mln.), representing a net initial yield of 9.62%.
The estate comprises a substantial multi-let industrial estate totaling 1.078 million ft² (approx. 100,000 m²) in 22 units, which is situated on a strategic, self contained site of approx. 47 acres, on the eastern edge of Birmingham city center, with easy access to the M6. It currently produces £2.35 million p.a., with eight vacant units, equating to 30% vacancy (by area). The average unexpired lease term is 3.1 years to expiry and 2.6 years to break options.
The acquisition presents a number of opportunities for adding value, by letting vacant units, re-gearing leases with existing tenants, upgrading and refurbishing units and reorganization of underused car parking space.
This deal follows the £27.7-million acquisition for HPUT, of The Treforest Industrial Estate near Cardiff, from SEGRO, announced on December 24, 2010. The 136-acre estate provides 918,000 ft² in 124 units, some six acres of open storage and 11 acres of development land. It currently produces £2.78 million p.a., representing a net initial yield of 9.94%, with around 25% vacancy. The average unexpired lease term is 5.4 years to expiry and 4.2 years to break options.
HPUT, established in 2009, now has a £82.5-million portfolio. The Fund is 33% owned, and managed by Hansteen.
Commenting on the acquisition, Ian Watson, Joint Chief Executive of Hansteen said: "With these two recent acquisitions we have invested over £80 million for the Fund in 2010; these are properties where we can use our expertise in intensive management to add real value".