HSTN.L Regulatory News (HSTN)

14 Jan 2008 07:01

Hansteen Holdings plc14 January 2008 14 January 2008 Hansteen Holdings plc ("Hansteen" or "the Company") Hansteen completes 2007 with further €29 million purchases in Germany, France and the Netherlands Hansteen (AIM: HSTN), the investor in continental European real estate,announces that it has made six acquisitions for a total consideration of €29million (£22 million). These properties are currently generating annual rentalincome of €2.44 million (£1.85 million) with a potential rent roll upon theletting of vacant buildings of over €3 million (£2.27 million). Four of the new acquisitions are located in Germany, one in the Netherlands andone in France. The properties in Germany were acquired for a total considerationof €22 million (£16.67 million) and in the Netherlands and France, €1.6 million(£1.21 million) and €5.43 million (£4.11 million) respectively. These acquisitions round off an active year, in which the Company acquired 56properties with a combined value exceeding €300 million (£227 million) ataverage yields close to 8% in 36 different transactions. Throughout 2007, thehigh yielding industrial property market in Continental Europe remained robust,both in terms of yields and occupier demand. The returns on investment are stillsignificantly higher than the cost of money and occupier demand is increasing. The Company's actual rent roll at the year end was approximately €41 million(£31 million) compared to approximately €16 million (£11.4 million) at the startof the year. The €41 million compared to annualised interest on borrowings atthe year end of approximately €13 million (£9.85 million). Commenting, joint Chief Executive, Morgan Jones said: "Despite recent turmoil inthe global credit markets, the fundamentals of Hansteen's acquisitions leave usconfident in the value of our properties. From this strong cash surplus base wewould hope to supplement our investments in Continental Europe with someopportunistic acquisitions in the UK through 2008 and 2009." Germany Hansteen has acquired two modern, good quality office and warehouse buildingscomprising 3,848 sqm (41,420 sq ft) of space in Willich, a town close toDusseldorf airport. The properties were sold by a bank and are both currentlyvacant. Additionally, Hansteen has acquired a modern 7,120 sqm (76,639 sq ft) warehouseand office property located in Leonburg, which is directly adjacent to the A81(Stuttgart - Wurzburg) and A8 (Stuttgart - Munich) autobahns. Again the buildingis presently vacant and was purchased from a German bank. The Company has also acquired a small portfolio of properties in Freising, nearMunich, with a current rent of €316,000 (£239,000) p.a. The portfolio comprisesa two storey retail showroom, an empty industrial building, a large empty house,a small house and a local retail centre with a bank, two apartments and fourshops. The properties are part of a larger portfolio, which Hansteen hascontracted to buy from another German bank. The remainder of the portfolio(valued at approximately €4 million (£3 million)) should complete within thenext few months, if a number of pre-purchase conditions are satisfied by thevendor. Finally, Hansteen has purchased two properties located in Offenburg andAllmersbach, both in the south-west of Germany. The site at Offenburg is a35,995 sqm (387,447 sq ft) production and storage facility, multi let to tenantson flexible leases, most of whom are associated with the telecommunicationsindustry. This property generates an income of €1,474,766 (£1.12 million) p.a.There is also some development land included. The building in Allmersbach is a770 sqm (8,288 sq ft) satellite testing station, subject to a five year sale andleaseback from the vendor Ericsson, which produces a rental income of €36,900(£27,900) p.a. France Hansteen has acquired a logistics property located 36 km north of Marseille inthe main industrial area of Rousset, close to the A8 motorway, which providesaccess to Marseille, Lyon and Nice. The 17,500 sqm (188,368 sq ft) building is leased to Lidl as a distributioncentre for its southern supermarkets on a new nine year lease with tenant breaksat the end of years three and six (the normal French form of lease). Thebuilding generates an annual rental income of €475,234 (£359,782). The Netherlands Located in the northern Dutch town of Drachten, this acquisition provides 4,361sqm (46,941 sq ft) of warehouse and ancillary office space and was previouslyowner occupied by Vegro, a bathroom and kitchen supplies wholesaler. Thecurrent rent is €150,000 (£113,570) p.a. . Ian Watson, joint Chief Executive of Hansteen, added: "We are pleased with allthese purchases. A number are from banks, which have taken the properties on totheir books in the past and present excellent opportunities for Hansteen tocreate value. Generally speaking, we believe we are entering a period of theproperty cycle where making money out of property will be particularly relianton skill and application. Hopefully over time management teams with theseabilities will be able to show clear outperformance compared to more passiveowners." For further information: Ian Watson/Morgan Jones David Davies Jeremy Carey/Rachel DrysdaleHansteen Holdings plc KBC Peel Hunt Tavistock CommunicationsTel: 020 7016 8820 Tel: 020 7418 8900 Tel: 020 7920 3150 Notes to editors: Hansteen Holdings plc is a property company formed by Morgan Jones and IanWatson, the founders and former directors of Ashtenne Holdings plc. Hansteen focuses on investing in industrial properties in Continental Europe,which have higher yields, cheaper financing costs and greater opportunity forvalue improvement through asset management than can be achieved currently in theUK. It will also seek to profit from opportunistic acquisitions in otherproperty sectors both in the UK and abroad. Hansteen is listed on AIM, trading under the symbol HSTN. This information is provided by RNS The company news service from the London Stock Exchange