Hansteen will focus on providing its investors with consistent, high and realised returns. This will be achieved through acquisitions of properties over time to create a high yielding property portfolio in Continental Europe combined with other more opportunistic and management intensive acquisitions which, whilst lower yielding, should provide greater capital growth potential.

Hansteen has focused on Continental European industrial investments which, in the opition of the Board, have higher yields, cheaper financing costs, and greater opportunity for value improvement through asset management than it has been possible to achieve in the last few years in the UK. Hansteen also intends to invest in property in the UK outside the industrial sector, such as land which can be improved by planning gain.

As was the case in the UK some time ago, the difference between the yield on industrial property in Continental Europe and the cost of both short and medium term debt is significant. This allows Hansteen to leverage these properties with borrowings in Euros or other local currency, thereby improving the returns to shareholders.

Some purchases include vacant units bought at discounted prices where significant improvement in values can be achieved once let. Previous experience in both the UK and Europe shows that a hands-on approach to marketing can result in significant capital uplifts.

The Directors believe that over the next few years institutional funds and other large investors will increasingly want to invest in the Continental European industrial property market and that prices will rise as a result. In addition such funds normally tend to invest in larger lot sizes and, as currently is the case in the UK, will pay a premium for a ready prepared portfolio. This should present opportunities to sell at a profit portfolios of industrial properties that will have been assembled by Hansteen.

Although it is envisaged that Continental European industrial property will account for the majority of Hansteen’s assets, Hansteen intends to be opportunistic in making some non-industrial purchases both in the UK and Europe where the Directors believe there is potential to realise significant profits.

The Directors’ experience includes complex transactions in land, residential property, retail, office and corporate acquisitions and therefore the Directors intend to take advantage of opportunities in these areas. Furthermore, the Directors believe that movement in the UK property cycle will provide significant opportunities for well capitalized companies with experienced and opportunistic management teams. Again, the Directors’ intention is to try to position Hansteen to take advantage of any such downturn.