11. September 2012     Print Print 

Hansteen: Two sales and an acquisition in Germany

Hansteen Holdings has completed the acquisition of Horndon Industrial Park from the Joint Administrators of Easter Investments Three Limited and notarised the purchase of three industrial units in Germany for a total of £26.2 million with a combined rent roll of £2.7 million. The purchases, which are being funded from existing cash resources, reflect an initial yield of around 10.35%. The Company also announces the sales in Germany of its holding at Leinfelden for €7.9 million and Building 110 in Offenburg for €1.5 million.

Horndon Industrial Park is a 26 acre multi-let estate comprising 586,848 sq ft (54,520 m²) of older industrial units and yard space, 21,344 sq ft (1,983 m²) of modern industrial units and 19,219 sq ft (1,785 m²) of office space. The estate is currently let to 43 tenants and has a vacancy rate of 32.94%. Horndon Industrial Park is located directly opposite West Horndon Railway Station, 29 minutes from London Fenchurch Street by train and 4 miles from Junction 29 of the M25.

The German properties in Uhingen, Grevenbroich and Henstedt-Ulzburg, totalling a combined 271,121 sq ft (25,188 m²), are fully occupied and are being sold by Cambridge Place Investments.

The sale of Hansteen’s 131,675 sq ft (12,233 m²) holding at Leinfelden, which it had owned since 2006, follows the extension of the lease term and expansion of the anchor tenant Kaufhof, part of the German blue chip company Metro AG.

The 58,243 sq ft (5,411 m²) Building 110 at Offenburg, which Hansteen had owned since December 2007, was sold 80% vacant. Both sales were achieved above current book value and the original purchase price.

Commenting on the transactions in Germany, Ian Watson said: “The acquisition in Germany came out of the EB8 portfolio which Hansteen has been tracking since early 2011 and combines a high yield with interesting opportunities to add value. The sales are an excellent example of Hansteen adding value and then realising that value.”