LONDON—Hansteen Holdings PLC, a UK and Continental European property investment company, has completed the acquisition of a portfolio of seven multi-let offices and a portfolio of five industrial estates. The investment was made on behalf of Hansteen UK Industrial Property Unit Trust II.
The combined purchase price of $57 million (£36.2M) reflects a yield on passing rents of 9.0% gross of acquisition costs and an overall capital value of $117 (£73.8) per square foot.
"Our regional network will incorporate the assets into their respective portfolios and we expect to see early rental performance as a result,” said James Havery, director UK of Hansteen. “As we approach the end of HPUT II's investment period in March 2015, these acquisitions are both timely and accretive. We have further acquisitions under offer but still have firepower for assets that demonstrate strong property fundamentals and to which we can apply our particular skill set."
The office portfolio comprises seven multi-let offices, predominantly located in the south east of England, the largest of which is in Woodford Green, less than half a mile from the interchange of the North Circular and M11. The other assets are located in Witney, Bury, Coventry, Chesham, Stevenage and Waterlooville. The portfolio extends to 286,091 sq ft of which 14.3% is vacant. The passing rent roll of more than $4.1 million (£2.6M) a year (rising to $4.6 million on contracted rents) from the 120 tenants reflects an average rent of $16.50 (£10.50) per sq ft.
The industrial portfolio comprises four estates in South Wales and one in Narborough, Leicestershire, close to Junction 21 of the M1. The portfolio is a total of 203,969 sq ft with a low vacancy of 4.0%. The passing rent roll of $1.1 million (£0.7M) a year from the 25 tenants reflects an average rent of $5.70 (£3.60) per square feet.
Hansteen launched HPUT II in May 2013 with the capacity to invest up to $316 million of which $169 million of equity was subscribed, one third by Hansteen and the balance by Aviva Investors Real Estate Multi-Managers. Following these acquisitions HPUT II will have a total of approximately $261 million (£165M) of assets.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
