Hansteen Holdings, an investor in UK and Continental European real estate, has entered into a conditional agreement to acquire a 861,010 square metre German industrial property portfolio from HBI and HBI Delta Sub.

The effective acquisition cost is approximately EUR330m, financed by using approximately EUR70m from Hansteen’s existing cash resources and the balance of approximately EUR260m in debt.
 
The portfolio comprises 34 freehold properties across Germany and approximately 861,010 square metres of leasable area on 205 hectares.

The property is let to occupiers for industrial, workspace and office use.

The net annual rent is EUR30.3m per annum, equating to an initial yield of 9.2 per cent.

The current vacancy is 24.4 per cent, with an ERV of up to EUR7.7m.

Ian Watson (pictured), joint chief executive of Hansteen, says: “We know this portfolio well; it was acquired during the time we were assembling our German portfolio and the two are highly compatible. Our management approach will provide an opportunity to create significant added value, particularly by improving occupancy levels.”