Hansteen to acquire Kilmartin portfolio for £80.375 million (UK)

Hansteen Holdings plc, the investor in UK and continental European real estate has exchanged contracts to acquire a 1.221 million ft² (113,000 m²) multi-sector portfolio of 61 freehold and leasehold assets (the "Portfolio") from various subsidiaries of Kilmartin Holdings Limited (in Receivership), Kilmartin Group Limited (in Receivership) and Annfield Assets Limited (in Administration) for £80.375 million (approx. €91.32 mln.).


The portfolio includes 61 properties in England, Scotland, and Northern Ireland.

The Portfolio has the following characteristics:

· 1.221 million ft² across 54 freehold and seven leasehold properties
· 18 properties in England, 42 properties in Scotland and one property in Northern Ireland
· 24% by value in industrial, 30% in retail, 23% in offices, 8% in leisure and 15% in development land
· 48.2% by value in England, 49.5% in Scotland and 2.3% in Northern Ireland
· Net annual rent receivable of £5.596 million, equating to an initial yield of 7.0% (8.1% excluding land)
· Current vacancy of 58.3%, with an ERV of over £8.9 million

The Portfolio is highly compatible with Hansteen's intensive management approach and the Directors' experience across the UK market. The acquisition of the Portfolio is to be funded from Hansteen's existing cash resources. It is intended however that the acquisition of three freehold industrial properties from the Portfolio will be completed by the Hansteen UK Industrial Limited Partnership for total consideration of £9.465 million.

The acquisition of the majority of the Portfolio will complete on 5 May 2010 and the acquisition of the leasehold properties will complete five business days after obtaining the relevant landlord consents.

Ian Watson, Joint Chief Executive of Hansteen commented: "The Portfolio provides a great opportunity to create significant added value through improving occupancy levels and imposing our intensive management approach."

Morgan Jones, Joint Chief Executive of Hansteen added: "We have reached an exchange in ten days and during this transaction have established sound working practises with the Administrators, the Receivers and the Bank and have consolidated relationships we hope to build further on in the future."

Source: Tavistock

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