02. Juli 2012 
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Hansteen buys German logistics portfolio
Hansteen Holdings has completed the purchase of a portfolio of six logistics properties in Germany, from Dexus Funds Management Ltd., for 26 million Euros. The purchase, which was funded from existing cash resources, reflects an initial yield of 13.77%.
The properties, located in Langenweddingen, Friedewald, Knetzgau, Unna and Langenfeld (two), are all good quality distribution warehouses suited to modern occupational requirements, all with excellent motorway connections and total 127,000 sq m of built space. The price represents a capital value per sq ft of just 15.25 British Pounds, considerably less than 50% of replacement costs. The portfolio is 95% occupied with a current rent roll of 3.58 million Euros, representing a low average rent of 2.90 Euros per sq m.
Commenting on the acquisition Ian Watson, Joint Chief Executive of Hansteen, said: “This is a slightly unusual transaction for Hansteen given the high occupancy and the possibility that one or two of the tenants will vacate over the next year or two. However, we believe the portfolio represents fundamentally great value on a vacant possession basis. The fact that in addition it combines a high running yield, off low rents, with potential to add value through asset management initiatives and development opportunities made it irresistible.”
The properties, located in Langenweddingen, Friedewald, Knetzgau, Unna and Langenfeld (two), are all good quality distribution warehouses suited to modern occupational requirements, all with excellent motorway connections and total 127,000 sq m of built space. The price represents a capital value per sq ft of just 15.25 British Pounds, considerably less than 50% of replacement costs. The portfolio is 95% occupied with a current rent roll of 3.58 million Euros, representing a low average rent of 2.90 Euros per sq m.
Commenting on the acquisition Ian Watson, Joint Chief Executive of Hansteen, said: “This is a slightly unusual transaction for Hansteen given the high occupancy and the possibility that one or two of the tenants will vacate over the next year or two. However, we believe the portfolio represents fundamentally great value on a vacant possession basis. The fact that in addition it combines a high running yield, off low rents, with potential to add value through asset management initiatives and development opportunities made it irresistible.”
