Hansteen Holdings (LSE: HSTN), the UK and continental European property investment company, announces that it has notarized two purchases of a substantial multi-let industrial estate and a modern car dealership investment located in Hilden, Germany, for a total acquisition cost of up to 14.9 million, representing a net initial yield of 11.3%.
The vendor is a company within the St Martins Property Group.
The first purchase comprises a multi-let industrial estate with a lettable area of 26,514 m² and a current rent of 1,385,605 per annum; tenants include Cable & Wireless and Verizon. Approximately 4,000 m², in three industrial units, with a combined lettable value of around 240,000 per annum, is currently vacant. The total acquisition cost is 11.8 million an initial yield of 11.4% and a reversionary yield of 13.7%.
The second purchase comprises a Mercedes car dealership constructed in 2005 and let at a current rent of 335,000 per annum, on a lease to 2025 with no breaks. Hansteen has agreed to pay 2.95 million for this investment; however, the existing tenant has a pre-emption right which entitles the tenant to purchase the property for the same price within a month of having received formal notice about the acquisition. Accordingly this property may or may not be finally acquired by Hansteen.
Hilden is centrally located in the Ruhr region, 10 km south of Düsseldorf and 35 km north of Cologne. The site has easy access to the A59, A46, and A3 motorways, which connect all the major cities in the Ruhr region and is located in the main industrial area of Hilden, an area characterized by many logistics companies and car dealers.
Ian Watson, Joint Chief Executive of Hansteen commented: "We are absolutely delighted with these purchases which give Hansteen everything it normally looks for. Good quality property with a high yield and vacancy which should enable us to grow income and the capital value over time.
"We already have 14 assets within the region, which gives us a good insight into the current occupier market and gives us substantial management efficiencies."
Source: Hansteen Holdings plc