The Board of Hansteen announces that it has agreed to dispose of its German and Dutch portfolios for €1.28 billion to
entities owned by funds advised by affiliates of The Blackstone Group L.P. and M7 Real Estate (the “Buyer“).
Highlights of the Transac on are:
· The portfolios are being sold on a debt free basis for cash, and the value given to the German and Dutch portfolio is
€1.28 billion payable upon Comple on (less a deposit of €50 million which has been paid), subject to a net asset
value adjustment post‐Comple on. All latent capital gains tax liabilites incurred in relation to the Transaction will
be shared on an equal basis between the Company and the Buyer.
· The price represents a premium of approximately €76 million (6 per cent.) to the Year End Valuation which itself
included a valuation uplift of €34 million over the 31 December 2015 valua on.
· The disposal realises the value in the portfolios at a me when not only are they at historically high levels of
occupancy and rent for the period of Hansteen’s ownership but also the Euro/Sterling exchange rate is favourable.
· Comple on is expected to occur before the end of June 2017. Conditions to Comple on include Hansteen’s
Shareholder approval and the Buyer obtaining an ‐trust clearance in Germany.
Following Comple on and repayment of the debt secured against the German and Dutch por olios (and satisfaction of
other incurred costs) Hansteen intends to distribute a substantial portion of the net cash proceeds of the Transaction to its
Commeting on the Transaction, Morgan Jones and Ian Watson, joint chief executives of Hansteen, said: “This is a
compelling opportunity to crystallise both the revaluation gains from these German and Dutch assets achieved by our
active asset management and the gains from foreign exchange movements. The value being realised is around 30 per cent.
higher than the book value at 31 December 2015 when measured in Sterling.
The sale is in line with our long‐term business and portfolio strategy of buying at a low point in the cycle, with low
occupancy and rents, adding value through improved asset management and subsequently realising the investment at a
higher point in the cycle”.
Hansteen was advised by JLL on the Transaction.
Source : Company