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Hansteen to sell German, Dutch industrial properties for €1,28bn

Hansteen announces that it has agreed to dispose of its German and Dutch portfolios for €1.28 billion to the Onyx-venture of the Blackstone Group and M7 Real Estate. The completion is expected to occur before the end of June 2017.

The price represents a premium of approximately €76 million (6 per cent.) to the Year End Valuation which itself included a valuation uplift of €34 million over the 31 December 2015 valuation. The portfolios are being sold on a debt free basis for cash. According to Hansteen, the disposal realises the value in the portfolios at a time when not only are they at historically high levels of occupancy and rent for the period of Hansteen's ownership but also the Euro/Sterling exchange rate is favourable.

Commenting on the Transaction, Morgan Jones and Ian Watson, joint chief executives of Hansteen, said: “This is a compelling opportunity to crystallise both the revaluation gains from these German and Dutch assets achieved by our active asset management and the gains from foreign exchange movements. The value being realised is around 30 per cent. higher than the book value at 31 December 2015 when measured in Sterling.

The sale is in line with our long-term business and portfolio strategy of buying at a low point in the cycle, with low occupancy and rents, adding value through improved asset management and subsequently realising the investment at a higher point in the cycle”.

At the same time Hansteen reported its full year results for the year ended 31 December 2016. The company announced that its pretax profit dipped in 2016, but pushed up its dividend and said further funds may be returned to shareholders after agreeing the deal with Blackstone and M7.

The pretax profit for the year to the end of December fell to 138.22 (119.9 Million) from €197.59 (GBP171.4 Million) a year earlier, due to the high property revaluation on its portfolio in 2015 that was not repeated in 2016. Nevertheless, the company lifted its dividend for the year 12% to 5.90 pence per share from 5.25p per share.