Hansteen Holdings has sold a portfolio from the Ashtenne Industrial Fund, in which it has a 36.7 per cent interest, for a total of GBP62 million to Rockspring Hanover Property Unit Trust, reflecting a net initial yield of 7.5 per cent.
The portfolio comprises 10 multi-let industrial estates and one office park predominantly in the South East of England, totalling 171 units and nearly 900,000 sq ft.
The occupancy rate is 91 per cent and the assets are let to 120 tenants including HSBC bank, Virgin Media and Halfords Autocentres, generating an annual net rental income of GBP4.9 million.
This is the first portfolio from the GBP490 million Ashtenne Industrial Fund to be sold since Hansteen was appointed as asset manager on the fund in August 2013.
Mark Ovens, director (UK) of Hansteen, says: “Bidding for this portfolio was extremely competitive, which reflects the strength of the multi-let industrial market. We believe this sector will continue to experience yield compression and rental growth because of sustained occupier and investor demand.”
Hansteen was advised by DTZ on the transaction. Rockspring was advised by Fletcher King and Caisson.