HSTN.L Regulatory News (HSTN)

07 January 2013

Hansteen Holdings PLC

("Hansteen" or the "Company")

HANSTEEN IN GERMANY AGREES OVER €40 MILLION INVESTMENT DEALS AND A PRE-LET

Hansteen (LSE: HSTN), the investor in UK and continental European real estate, has carried out a series of significant investment and leasing transactions in Germany, proving its expertise at asset recycling and asset management.

In the biggest transaction, just completed, Hansteen has acquired the German assets of the EIP Fund for €24.5 million, satisfied from existing cash resources. The price reflects an initial yield of 10.6% and the reversionary yield is more than 14%.

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 €2.6 million a year from 32 tenants with 41% (34,917 sq m/375,850 sq ft) vacant. The estimated rental value (ERV) of the portfolio is €3.6 million a year.

This transaction follows the recent announcement (27 December 2012) of the acquisition of a £60 million 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 £6.1 million, representing a net initial yield of 10.1%, and vacancy rate of 16%.

Hansteen has also agreed five investment sales in Germany for a total of €15.9 million. The sales comprise properties in Neckarsulm for €2.75 million, in Freising for €2.45 million, in Aschaffenburg for €2.3 million, in Weiterstadt to the occupier for €8.05 million and three small residential blocks in Padderborn for €370,000.

On the leasing side, in a transaction which will give Hansteen a return of over 10%, it has pre-let a new building at Industriepark in Gottmadingen, southern Germany, to an existing tenant, Constellium Singen GmbH, 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. ConstelliumSingen has agreed a twelve year lease from practical completion, expected in late July, at an initial rent of €97,500 a year and has also agreed to extend its existing leases, which total around €1.5 million of rent a year, from five to twelve years.

Commenting on the EIP deal, Ian Watson, joint chief executive of Hansteen, said: "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, said: "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."

For further information:

HANSTEEN HOLDINGS PLC

Hansteen Holdings PLC (LSE: HSTN) is a European industrial REIT that invests in properties with high yields, low capital costs and opportunity for value improvement across the Netherlands, Germany, Belgium, France and the UK.

Founded by Morgan Jones and Ian Watson, the Company listed on Aim in November 2005 raising £125 million. In 2009, it raised a further £200.8 million by way of a Placing and Open Offer and moved to the Official List, converting to a REIT shortly thereafter. In April 2011, the Company raised a further £150 million by way of a Placing and Open Offer.

As 30 June 2012, Hansteen had a portfolio of some 280 assets with a value of around £1,171 million, including HPUT.