HSTN.L Regulatory News (HSTN)

4 January 2011

Hansteen Holdings

("Hansteen" or the "Company")

£23 million acquisition of Birmingham Business Park

Hansteen Holdings (LSE:HSTN), the investor in UK and continental European real estate, announces that Hansteen Property Unit Trust ("HPUT") has acquired Saltley Business Park, Birmingham, from LPA Receivers acting for Lloyds Banking Group, for £23.285 million, representing a net initial yield of 9.62%

The estate comprises a substantial multi-let industrial estate totalling 1.078 million sq ft in 22 units, which is situated on a strategic, self contained site of approx. 47 acres, on the eastern edge of Birmingham City Centre, with easy access to the M6. It currently produces £2.35 million p.a., with eight vacant units, equating to 30% vacancy (by area). The average unexpired lease term is 3.1 years to expiry and 2.6 years to break options.

The acquisition presents a number of opportunities for adding value, by letting vacant units, re-gearing leases with existing tenants, upgrading and refurbishing units and reorganisation of underused car parking space.

This deal follows the £27.7 million acquisition for HPUT, of The Treforest Industrial Estate near Cardiff, from SEGRO, announced on 24 December 2010. The 136 acre Estate provides 918,000 sq ft in 124 units, some six acres of open storage and 11 acres of development land. It currently produces £2.78 million p.a., representing a net initial yield of 9.94%, with around 25% vacancy. The average unexpired lease term is 5.4 years to expiry and 4.2 years to break options.

HPUT, established in 2009, now has a £82.5 million portfolio. The Fund is 33% owned, and managed by Hansteen.

Commenting on the acquisition, Ian Watson, Joint Chief Executive of Hansteen said: "With these two recent acquisitions we have invested over £80 million for the Fund in 2010; these are properties where we can use our expertise in intensive management to add real value".

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Notes to Editors:

HANSTEEN HOLDINGS PLC

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

In 2010 Hansteen increased its portfolio to 189 assets with a value of around £721.9 million through the acquisition of a German industrial property portfolio from HBI for approx. €330 million and the acquisition of the 1.2 million sq ft multi-sector Kilmartin portfolio of UK properties for £80.37 million.

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.

HANSTEEN PROPERTY UNIT TRUST

Hansteen Property Unit Trust was launched with £90 million of equity. Of this, £30 million was provided by Hansteen and the remainder from five institutional investors. Once the equity has been invested the Fund will be prudently geared to a maximum of 50% giving a total fund size of £180 million.

The Fund was launched in August 2009 with up to £180 million to invest in UK industrial property with a value of £15 million or less, or portfolios under £30 million.