Hansteen Holdings PLC, the UK and Continental European property investment company, announces that it has sold a portfolio from the Ashtenne Industrial Fund , in which it has a 36.7% interest, for a total of £62 million to Rockspring Hanover Property Unit Trust, reflecting a net initial yield of 7.5%.
The portfolio comprises 10 multi-let industrial estates and one office park predominantly in the South East of England, totalling 171 units and nearly 900,000 sq ft. The occupancy rate is 91% and the assets are let to 120 tenants including HSBC bank, Virgin Media and Halfords Autocentres, generating an annual net rental income of £4.9 million.
This is the first portfolio from the £490 million Ashtenne Industrial Fund to be sold since Hansteen was appointed as asset manager on the Fund in August 2013.
Mark Ovens, Director (UK) of Hansteen, commented: “Bidding for this portfolio was extremely competitive, which reflects the strength of the multi-let industrial market. We believe this sector will continue to experience yield compression and rental growth because of sustained occupier and investor demand”.
Hansteen was advised by DTZ on the transaction. Rockspring was advised by Fletcher King and Caisson.
|For further information:
Hansteen Holdings PLC
Tel: 020 7408 7000
|Jeremy Carey/Faye Walters
Tel: 020 7920 3150
Notes to Editors:
The portfolio comprises:
Mountbatten Business Park, Portsmouth – 21 units totalling over 130,000 sq ft
Mill Lane Industrial Estate, Alton – 17 units totalling nearly 123,000 sq ft
Lloyd’s Court, Manor Royal – 20 units totalling nearly 52,000 sq ft
Units 3 & 4 Brittingham House, Crawley – 4 units totalling nearly 7,000 sq ft
April Court, Crowborough – 17 units totalling over 31,000 sq ft
WitanWitan Park Industrial Estate, Witney – 11 units totalling nearly 112,000 sq ft
Barking Business Centre, Barking – 34 units totalling over 84,000 sq ft
Roydonbury Industrial Estate, Harlow – 7 units totalling nearly 92,000 sq ft
Units 1-4 Crammond Park, Harlow – 4 units totalling nearly 63,000 sq ft
Babbage Road & Motorway Industrial Estate, Stevenage – 7 units totalling nearly 73,000 sq ft
Hellesdon Hall Industrial Park, Norwich – 29 units totalling 128,000 sq ft
THE ASHTENNE INDUSTRIAL FUND
The Ashtenne Industrial Fund (“AIF”) was originally formed in July 2001 when Ian Watson and Morgan Jones, founders of Hansteen, were Joint Chief Executives of Ashtenne Holdings PLC. AIF owns over 14.6 million sq ft of multi let industrial properties in the UK. The portfolio has over 3,000 units, on 240 individual estates, with an annual rent roll of £44.2 million and a current vacancy of 17%. At 31 March 2014, the gross asset value of the properties was £490 million. Hansteen was appointed asset manager of AIF in August 2013 and acquired a 26.3% stake in the Fund. Hansteen then increased its interest in AIF to 36.7% in March 2014.
HANSTEEN HOLDINGS PLC
Hansteen Holdings PLC (LSE: HSTN) is a European industrial REIT that invests in properties with high yields, low capital costs and opportunity for value improvement across Germany, the UK, the Netherlands, Belgium and France.
Founded by Morgan Jones and Ian Watson, the Company listed on Aim in November 2005 raising £125 million. In 2009, it raised a further £200.8 million by way of a Placing and Open Offer and moved to the Official List, converting to a REIT shortly thereafter. In April 2011, the Company raised a further £150 million by way of a Placing and Open Offer.
At 31 December 2013, the portfolio under management comprised 4.1 million sq m and was valued at over £1.5 billion.