Hansteen acquires thirteen properties for €21.65 million in Germany
Hansteen Holdings PLC (LSE: HSTN), the UK and Continental European property investment company, announces that it has exchanged contracts on the acquisition of 13 multi-let and single-let industrial properties located in established commercial zones across Germany, from Benelux Industrial Partners, for a total of €21.65 million, inclusive of costs. Completion of the purchase is due in June 2015.
The assets provide a total lettable area of 99,355 sq m, of which 18,172 sq m (18.29%) is currently vacant. The properties produce a combined passing rent roll of €2.78 million per annum from 66 tenants, reflecting an initial yield of 12.86 per cent, with an unexpired weighted average lease term of 1.13 years. When fully let, the portfolio is expected to produce a rent roll in excess of €3.46 million per annum.
Ten of the properties are located in the North-Rhine Westphalia region with the remaining three situated in Eichenzell, Bingen and Hann Muenden.
Ian Watson, joint Chief Executive of Hansteen, commented: "This is exactly the sort of purchase Hansteen loves. It will be hard work and require some capital expenditure but the portfolio has a high yield and real capital upside."
Paul Rodger, Hansteen's Germany Director added: "This high-yielding portfolio with its current vacancy rate and short average lease length provides significant potential to add value through active asset management. We are looking forward to taking control of the properties in the coming weeks and to beginning the turnaround process."