Hansteen (LSE: HSTN), the investor in UK and continental European industrial property, announces that it has acquired two UK industrial assets in Derbyshire and the North East of England for a combined price of €56 mln (£41.1 mln), inclusive of purchase costs.
Hansteen has exchanged contracts to acquire West Hallam Industrial Estate from DV4 Properties West Hallam Ltd, an SPV which owns West Hallam Industrial Estate, Ilkeston, in south Derbyshire for €37.2 mln (£27.3 mln), reflecting a triple net initial yield of 6.2%. Completion is due to take place on Thursday 24 September.
Hansteen has also exchanged contracts to acquire Belasis Business Park, Billingham, Teesside, for €18.8 mln (£13.8 mln) (inclusive of purchase costs), reflecting a net initial yield of 7.0% which rises to 8.3% on contracted rent. Completion is scheduled for Tuesday 29 September.
West Hallam Estate covers 48 hectares and includes 106 buildings, totalling 118,915 m² (1.28 mln ft²) and benefits from large areas of open storage land. The entire site is let to Norbert Dentressangle (which in June 2015 was acquired by XPO Logistics, a top ten global provider of supply chain solutions), on two agreements, and produces a total annual income of €2.3 mln (£1.7 mln). 72,237 m² (777,556 ft²) across 26 buildings is let on an eight year FRI lease, from 31 October 2010 at €1.6 mln (£1.2 mln) per annum, with an open market rent review in October 2015.
Belasis Business Park provides 33 purpose-built, detached and terraced business units, totalling 11,997 m² (129,136 ft²) on a 25 hectare site. It is 84% let to 19 occupiers, generating annual contracted income of €1.6 mln (£1.15 mln). Three substantial adjoining freeholders contribute to the running costs of the Park. The Park has an exceptional WAULT of over 10 years and major tenants include Tracerco (part of Johnson Matthey), ABB Group and Worley Parsons. The long lease profile is a direct result of the occupiers’ confidence in the long term success of the Teesside chemical sector and the huge capital investments that some of them have made in the location.
Source: Hansteen Holdings PLC
