LONDON (ShareCast) - Hansteen has purchased a portfolio of industrial estates for 60m pounds from The Industrial Trust.
The investor in UK and continental European real estates will use existing cash resources and debt via a new facility with Royal Bank of Scotland (LSE: RBS.L - news) to pay for the portfolio which includes 32 estates - a total of 1.6m square feet across the UK.
It has an rent roll of £6.7m per year. The acquisition, which is due to be completed on January 31st, will show a net initial yield of 10.1%.
Mark Ovens of Hansteen, said: "The portfolio is highly compatible with our intensive management approach and the team's experience across the UK. It has strong fundamentals with a great opportunity to add value through improving occupancy and imposing our management approach via our network of regionally based asset managers."
Hansteen recently acquired Zeppelin Park, a 160 hectare industrial park located in western Berlin, for €11.3m. The park contains 40,134 square metres of logistics and light industrial space in 19 buildings let to 26 tenants, with a current vacancy of approximately 17%.
The passing rent is €1.7m per annum and the target rent when fully occupied will be €2m per annum. Capital (Other OTC: CGHC - news) expenditure cost of about €3m is expected to be required to achieve the target rent.