Hansteen Holdings (LSE: HSTN), the investor in UK and continental European real estate has exchanged contracts to acquire a multi-sector portfolio of 12 freehold and leasehold assets in Scotland for a total cost of £13.5 million (approx. €16.4 mln.)
The portfolio includes 10 freehold and two leasehold properties, furthermore:
- 10 of the properties are located on the east coast of Scotland between Perth and Edinburgh.
- 54% of the value is in five commercial properties with the remainder comprising five consented residential development sites totaling 20 acres and 17 new build flats in two properties.
- Net annual rent receivable from the commercial properties is £839,533 equating to an initial yield of 11.46%.
- Current vacancy of the commercial property is 28%.
Additionally, Hansteen expects to enter into an asset management agreement whereby the company will manage three substantial industrial properties in Merseyside and South Humberside in return for a management fee and an incentive payment upon a successful sale.
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.
The acquisition of the majority of the portfolio completed on August 20, 2010 and the acquisition of the leasehold properties will complete five business days after obtaining the relevant landlord's consent.
Morgan Jones, Joint Chief Executive of Hansteen commented: "As with the previous Kilmartin portfolio, this portfolio contains a lot of small but interesting properties which we believe can produce good returns with focused and vigorous management."
Ian Watson, Joint Chief Executive of Hansteen added: "We are particularly pleased that Hansteen's ability to resolve complex asset management challenges has been recognized in the context of the asset management agreement. Again, we performed on this purchase within a very tight timescale of 15 working days from agreeing terms to exchange of contracts."
Source: Hansteen Holdings PLC