Hansteen Holdings PLC, the investor in continental European and UK real estate, announces the launch of the Hansteen UK Industrial Property Unit Trust II. The Fund has been seeded with approximately £49 million (approx. €57.3 million) of property and will have the capacity to invest up to approximately £200 million (approx. €234 million) in UK industrial property.
The Fund has been launched with £107 million of equity; one third provided by Hansteen and two thirds from clients of Aviva Investors Real Estate Multi-Managers (REMM). The Fund is the second of its type to be launched and co-invested by Hansteen and follows the success of The Hansteen UK Industrial Property Unit Trust launched in July 2009, which is now fully invested, in which Aviva Investors (REMM) are also unit holders.
Ian Watson, Joint Chief Executive of Hansteen said: “We are delighted to have entered into this venture with Aviva Investors, with whom we already enjoy a successful relationship as a co-investor in the first fund. The quantum of their investment is testament to their confidence in us as a partner who can deliver performance. They share our view that the current market is presenting real opportunities for well capitalized investors. We look forward to working with Aviva Investors as we exploit those opportunities over the life of the Fund.”
The Fund, which will be focused on both high-income generation as well as growth in net assets, is targeting annual returns, after fees and expenses, of 12-15%. Net income will be distributed quarterly. The life of the Fund will be six years and will be prudently geared to a maximum of 45% as equity is deployed. The Fund has a debt facility in place with Royal Bank of Scotland.
As property advisor, Hansteen will receive asset management fees and a performance based fee, in addition to the return on its investment.
Morgan Jones, Joint Chief Executive of Hansteen added: “Gaining wider exposure to the industrial property cycle, through the formation of limited life funds with third party equity, has proven successful for Hansteen, to date.
HPUTII will be Hansteen's vehicle for investing in UK industrial property with a value of £15 million or less, or portfolios under £30 million, for the earlier of either the Fund becoming fully invested or in 18 months time."
James Havery, Director UK commented: “As a business, we have completed on over £500 million of transactions since re-entering the UK market in 2009. Our unrivalled track record and established UK platform mean we are well placed to source and acquire stock. We already have new acquisitions progressing and believe the following 18 months will provide compelling opportunities to acquire fundamentally good property, at very attractive prices.”
Alistair Dryer, Senior Fund Manager at Aviva Investors (REMM) said: “This is a very exciting opportunity to invest alongside our partners Hansteen at what we believe is an opportune point in the investment cycle for our clients.’’
John Gellatly, Head of Aviva Investors REMM Europe added:
“It is a pleasure to continue working with the individuals now at Hansteen and previously with Ashtenne, who we have known for several years and who we rate highly as a management team in this sector”.
Aviva Investors is one of the largest global real estate multi-manager investors with more than £5.6 billion invested through multi-manager strategies. It invests worldwide and on behalf of leading corporations, public pension funds, and other institutional clients and has built one of the longest track records in the industry.