Hansteen (LSE:HSTN), the industrial property investor, announces that it has exchanged contracts to acquire a mixed-use portfolio of 34 properties. The properties are located throughout the UK with a focus on the North West and the West Midlands for £53.7 million, reflecting a net initial yield after costs of 9.15% and a low capital value of £41 per sq ft. The vendor is St Modwen Properties PLC and the purchase will be funded with current cash resources and a drawdown under the revolving credit facility from the Royal Bank of Scotland.
The portfolio provides 1.4 million sq ft of accommodation, let to more than 200 tenants producing a current rent of £5.25 million per annum. Approximately 85,000 sq ft, 6.1%, is vacant and the weighted average unexpired lease term (WAULT) is 3.10 years to expiry and 2.75 years including break options. There is a diverse tenant base which includes Toolstation Limited, Pirelli UK Tyres Limited, Staffordshire County Council and British Steel Limited.
Morgan Jones and Ian Watson, Joint Chief Executives of Hansteen, commented: “This portfolio fits perfectly with our buying criteria. There are a number of asset management opportunities and initiatives across the portfolio which provide us with the opportunity to increase the rent roll and create additional value”.
Source : Company