Hansteen acquires remaining £39.5 million of AIF units and refinances UK and France portfolio with a £330 million facility
Hansteen (LSE: HSTN), the UK and Continental European property investment company, announces that it has exchanged contracts to acquire a further 86.5 million units in Ashtenne Industrial Fund Unit Trust (“AIF”) for £39.5 million cash, reflecting a price per unit of 45.65 pence. This acquisition, representing 14.41% of the units in issue, increases Hansteen’s holding in AIF to 100% and is expected to complete later this week. There is an immediate £3.8 million NAV enhancement for Hansteen which represents the performance fee on these units. The units were purchased from British Airways Pension Trustees Limited, The Royal London Mutual Insurance Society Limited, Kames Capital and clients of Schroder Real Estate Capital Partners.
AIF owns some 11.3 million sq ft of multi-let industrial properties in the UK. At 31 December 2015, the portfolio consisted of 2,935 units at 227 individual estates, with an annual rent roll of £34.7 million and vacancy of 12.0%. The gross asset value of the properties was £436.4 million.
In addition, Hansteen has refinanced both its existing loan secured against the UK and France portfolios and the loan secured against the AIF portfolio with a single loan facility totalling £330.0 million. This new facility replaces the £95.0 million corporate revolving credit facility provided by the Royal Bank of Scotland and the £138.1 million loan in AIF provided by a syndicate of lenders led by the Royal Bank of Scotland. These two loans were due for repayment in July 2018 and October 2017 respectively. Hansteen has drawn £280.0 million of the facility which equates to a loan to value ratio of 43.8% with hedging against 60.1% of the loan. The interest cost is 2.3% per annum, excluding fees, and the overall cost of borrowing for Hansteen has reduced to 2.9% (3.5% at 31 December 2015) with the debt maturity profile increasing from 2.6 years to 3.8 years.
Derek Heathwood, Hansteen’s UK Property Director, commented: “We are delighted to have completed the purchase of the remaining units in AIF so that we now own 100% of the Fund. The purchase represents the acquisition of c. £60 million of property at a yield on the passing rent in excess of 8%. The investment further increases our exposure to the UK light industrial sector and our unique UK asset management platform of seven offices will enable us to drive value not only by reducing the void, but also by continuing to focus on rental growth which we are witnessing across all our UK regions.”
Janine McDonald, Hansteen’s Treasury Director, commented: “We appreciate the support of RBS, Barclays and HSBC in helping us to achieve the flexibility of funding that we have secured in this complex transaction. The new facility, consisting of a term loan and a revolving element, reduces the Group’s cost of borrowing and provides Hansteen with significant additional firepower.”
For further information:
Morgan Jones / Ian Watson Jeremy Carey
Hansteen Holdings PLC Tavistock
Tel: 020 7408 7000 Tel: 020 7920 3150
Notes to Editors:
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 the Netherlands, Germany, Belgium, France and the UK.
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 2015, Hansteen had total property under management of some 494 assets with a value of £1.5 billion.