Hansteen has carried out a series of investment and leasing transactions in Germany.
In the biggest transaction, just completed, Hansteen has acquired the German assets of the EIP Fund for EUR24.5m, satisfied from existing cash resources. The price reflects an initial yield of 10.6 per cent and the reversionary yield is more than 14 per cent.
The portfolio comprises seven multi-let industrial estates, totalling 84,224 sq m (906,600 sq ft), located in Hannover, Dusseldorf, Hennef, Frankfurt, Rodgau, Stuttgart and Munich. The properties have a combined rent roll of EUR2.6m a year from 32 tenants with 41 per cent (34,917 sq m/375,850 sq ft) vacant. The estimated rental value (ERV) of the portfolio is EUR3.6m a year.
This transaction follows the recent announcement (27 December 2012) of the acquisition of a GBP60m portfolio of multi-let UK industrial estates from The Industrial Trust. The portfolio comprises 32 estates, totalling 1.6 million sq ft, and has an annual rent roll of GBP6.1m, representing a net initial yield of 10.1 per cent, and vacancy rate of 16 per cent.
Hansteen has also agreed five investment sales in Germany for a total of EUR15.9m. The sales comprise properties in Neckarsulm for EUR2.75m, in Freising for EUR2.45m, in Aschaffenburg for EUR2.3m, in Weiterstadt to the occupier for EUR8.05m and three small residential blocks in Padderborn for EUR370,000.
On the leasing side, in a transaction which will give Hansteen a return of over 10 per cent, it has pre-let a new building at Industriepark in Gottmadingen, southern Germany, to an existing tenant, Constellium Singen, an automotive structures business, for expansion space. The building will comprise 2,200 sq m (23,680 sq ft) of yard space and 1,500 sq m (16,150 sq ft) of unheated warehouse space with 192 car parking spaces. Constellium Singen has agreed a 12 year lease from practical completion, expected in late July, at an initial rent of EUR97,500 a year and has also agreed to extend its existing leases, which total around EUR1.5m of rent a year, from five to 12 years.
Commenting on the EIP deal, Ian Watson, joint chief executive of Hansteen, says: "This portfolio provides excellent diversity of income and is compatible with Hansteen’s intensive management approach. With its high vacancy rate it presents a number of opportunities to create significant added value through improving occupancy.”
Paul Rodger, of Hansteen, commenting on the Constellium transaction, says: “This pre-let is further proof of our asset management expertise and strong relationships with tenants. Our regional asset management offices continue to enjoy considerable success in retaining existing occupiers as well attracting new ones.”