Hansteen Holdings PLC (LSE: HSTN), the investor in UK and continental European industrial property, is pleased to announce that it has acquired a further £26 million of units in the Ashtenne Industrial Fund (AIF) (“Acquisition”). Further to this Acquisition, Hansteen is pleased to announce it has also raised a total of £47.1 million through the issue of 44,834,877 new Ordinary Shares (“Placing Shares”) representing approximately 7.00 per cent. of the capital of the Company (the "Placing").
* Acquisition of £26 million of units in AIF taking Hansteen’s unit-holding to 36.7 per cent.
* Placing of 44,834,877 Placing Shares at 105 pence (“Placing Price”) to raise £47.1 million at a discount of 2.78 per cent. to the closing share price on 27 March 2014
Background to the Acquisition and Placing
* In September 2013, Hansteen invested £53 million of AIF units representing 27.5 per cent. of the AIF units and assumed the management contract of the fund from Warner Estates
* Since Hansteen took over management of the contract, as at 31 December 2013, the valuation of AIF property increased by 5.8 per cent. from the valuation at 30 September 2013 and the like-for-like rent increased by £0.7 million.
* 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. At 31 December 2013, the portfolio consisted of over 3,000 units, on 240 individual estates, with an annual rent roll of £43.9 million and vacancy of 17 per cent. The gross asset value of the properties was £480.1 million and the yield on the properties was 9.1 per cent.
* Hansteen has acquired a total of £130.3 million assets in the last six months, the majority of which were in the UK for both its own account and HPUT II. Having recently completed the successful refinancing of €343 million of debt, Hansteen believes that it has a secure base from which to invest further in strong income producing assets which offer attractive asset management angles.
* Hansteen recognises the increasing desirability of the industrial market in both the UK and continental Europe driven by both increasing investment into the asset class and growing occupier demand.
Hansteen has assembled a portfolio of £1.5 billion of industrial property assets through the recent downturn and the improvement in market sentiment is creating an environment where Hansteen can crystallise some of the value it has created from those acquisitions. However, there are still acquisition opportunities available to the Company from which it will be able to benefit as a cash buyer.
Reasons for the Placing
* Hansteen has acquired a further £26 million of units in AIF from three vendors at a price of 46.54 pence per unit which represents a 2 per cent. premium to the property valuation of AIF as at 31 December 2013. This will take its unit-holding to approximately 36.7 per cent. of AIF
* Following this acquisition, Hansteen will use the net fundraising proceeds to give the Company greater flexibility to pursue potential near-term acquisitions in the UK and Continental Europe.
Hansteen remains confident in its ability to source acquisitions in its selected geographies. Following this Acquisition, Hansteen will have an attributable ownership (representing its wholly owned portfolio plus its share of interest in AIF, HPUT I and HPUT II) of approximately £1.1bn value (31.3 million sq ft)
Details of the Placing
Under the terms of the Placing, Peel Hunt has placed 44,834,877 Placing Shares, representing approximately 7.00 per cent. of the issued ordinary share capital of the Company as at 27 March 2014. The Placing is conditional upon, inter alia, Admission becoming effective. The Placing is also conditional upon both the Placing Agreement becoming unconditional in all respects and not being terminated.
The Issue Price is 105 pence, representing a discount of 3.05 pence (2.82 per cent.) to the closing mid-market price of 108.05 pence per Ordinary Share on the London Stock Exchange on 27 March 2014 (the last practicable date prior to the issue of this announcement) and a premium of 15.4 per cent to the EPRA NAV of 91 pence per share as at 31 December 2013.
Application will be made for admission of the Placing Shares to the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange's main market for listed securities ("Admission"). It is expected that Admission will become effective at 08:00 am on 2 April 2014. Following Admission, the Company will have an issued share capital of 685,333,127 shares. The total number of voting rights of the Company will be 685,333,127 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company
The Placing Shares will, when issued, be credited as fully paid and rank pari passu with the existing Ordinary Shares in the capital of the Company including the right to receive all future dividends and distributions declared, made or paid. This will include the second interim dividend of 2.9 pence per share for the year ending 31 December 2013 which will be paid on 21 May 2014 to ordinary shareholders on the register at the close of business on 25 April 2014.
Morgan Jones, Joint Chief Executive of Hansteen, said: “We are very pleased to be able to add to our holding in the Ashtenne Industrial Fund, as we believe the investment will prove enhancing to both value and income.
“We are pleased by the support from our shareholders and particularly delighted to welcome new shareholders to the register in what is a well-supported fundraising”.
|Hansteen Holdings PLC
Tel: 020 7408 7000
Ian Watson / Morgan Jones
|Peel Hunt LLP
Financial advisor and broker
Tel: 020 7418 8900
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