Hansteen Holdings, the investor in UK and continental European real estate has entered into a conditional agreement to acquire or procure the acquisition of an 861,010 m² German industrial property portfolio from HBI S.à r.l. and HBI Delta Sub S.à r.l. for an effective acquisition cost of approximately 330 million, financed by using approximately 70 million from Hansteen's existing cash resources and the balance of approximately 260 million in debt.
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The acquired portfolio consists of 34 freehold properties across Germany.
The acquired portfolio consists of:
* 34 freehold properties across Germany
* Approx 861,010 m² of leasable area on 205 hectares
* Let to occupiers for industrial, workspace and office use
* Net annual rent receivable of 30.3 million per annum, equating to an initial yield of 9.2%
* Current vacancy of 24.4%, with an ERV of up to 7.7 million
* Capital value of built space 384 per m² compared to an insurance rebuild cost of 798 per m²
* Originally acquired for approximately 439 million and at peak, valued at 454 million
* Highly compatible with Hansteen's existing German portfolio and intensive management approach
Funding
* c.260 million five year facility arranged by UniCredit on beneficial terms and with no recourse to the Hansteen Group
* c.70 million from Hansteen's existing cash resources
* Transaction subject to shareholder approval at a General Meeting expected to be held on 1 April 2010
Ian Watson, Joint Chief Executive of Hansteen commented: "We know this portfolio well; it was acquired during the time we were assembling our German portfolio and the two are highly compatible. Our management approach will provide an opportunity to create significant added value, particularly by improving occupancy levels."
Morgan Jones, Joint Chief Executive of Hansteen added: "This portfolio has recently suffered significant capital constraints. We believe that a new asset management strategy could add further value. These opportunities, coupled with a new five year loan on very beneficial terms make this transaction particularly attractive to us."
Source: Tavistock
* 34 freehold properties across Germany
* Approx 861,010 m² of leasable area on 205 hectares
* Let to occupiers for industrial, workspace and office use
* Net annual rent receivable of 30.3 million per annum, equating to an initial yield of 9.2%
* Current vacancy of 24.4%, with an ERV of up to 7.7 million
* Capital value of built space 384 per m² compared to an insurance rebuild cost of 798 per m²
* Originally acquired for approximately 439 million and at peak, valued at 454 million
* Highly compatible with Hansteen's existing German portfolio and intensive management approach
Funding
* c.260 million five year facility arranged by UniCredit on beneficial terms and with no recourse to the Hansteen Group
* c.70 million from Hansteen's existing cash resources
* Transaction subject to shareholder approval at a General Meeting expected to be held on 1 April 2010
Ian Watson, Joint Chief Executive of Hansteen commented: "We know this portfolio well; it was acquired during the time we were assembling our German portfolio and the two are highly compatible. Our management approach will provide an opportunity to create significant added value, particularly by improving occupancy levels."
Morgan Jones, Joint Chief Executive of Hansteen added: "This portfolio has recently suffered significant capital constraints. We believe that a new asset management strategy could add further value. These opportunities, coupled with a new five year loan on very beneficial terms make this transaction particularly attractive to us."
Source: Tavistock
