HSTN.L Regulatory News (HSTN)

18 December 2014

Hansteen Holdings PLC

("Hansteen" or the "Company")

 Hansteen disposes of £43.9 million of UK assets

Hansteen (LSE: HSTN), the UK and Continental European property investment company, announces that it has completed the sale of eleven UK assets from the Ashtenne Industrial Fund ("AIF"), in which it has a 36.7% interest, for a combined price of £43.9 million, in three separate transactions. 

The largest asset, Langley Park, which has been sold for £32.0 million, is a 48 acre site in the centre of Chippenham, Wiltshire, comprising approximately 800,000 sq ft of office and industrial space and 19 acres of development land. The site is occupied by tenants including Siemens PLCS, IXYS UK Westcode Ltd and Schneider Electric Limited generating an annual rental income of £1.9 million. Langley Park was bought by Ashtenne in 2004 and is the largest single asset in AIF by both value and rental income.

In a separate transaction, Hansteen has completed the sale of a portfolio of nine multi-let industrial estates located in the north east of England with a total area of 334,135 sq ft and an annual rental income of £0.9 million. The portfolio was sold to Arch, The Northumberland Development Company.

Hansteen has also disposed of Units A-C Townsend Industrial Estate, Dunstable a 50,000 sq ft distribution unit sold with vacant possession to an owner occupier.

Mark Ovens Director (UK) of Hansteen, commented: "None of these properties currently fit our target income profile and these sales will be substantially income enhancing from the Fund's perspective. In each case Hansteen has identified a special purchaser for whom the property has a greater prospective value than it does for the Fund."

Savills acted for Hansteen on the sale of Langley Park.

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Notes to Editors:

THE ASHTENNE INDUSTRIAL FUND

The Ashtenne Industrial Fund ("AIF") was originally formed in July 2001 when Ian Watson and Morgan Jones, founders of Hansteen, were Joint Chief Executives of Ashtenne Holdings PLC. At 30 June 2014, AIF owned 13.6 million sq ft of multi let industrial properties in the UK. The portfolio had 269 individual estates, with an annual rent roll of £39.2 million and a vacancy of 18.1%. The gross asset value of the properties was £447.7 million. Hansteen was appointed asset manager of AIF in August 2013 and acquired a 26.3% stake in the Fund. Hansteen then increased its interest in AIF to 36.7% in March 2014.

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 Germany, the UK, the Netherlands, Belgium and France.

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. In March 2014 the Company raised £46.3 million from the Placing of 44.8 million shares.

At 30 June 2014, the portfolio under management comprised 4.4 million sq m and was valued at over £1.6 billion.