Warehouse Reit Regulatory News (WHR)

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 5 February 2018

Hansteen Holdings PLC

("Hansteen" or the "Company")

Hansteen sells Industrial Multi Property Trust portfolio for £116 million

Hansteen (LSE: HSTN), the investor in UK industrial property, announces that it has agreed to dispose of the Industrial Multi Property Trust portfolio (the "Portfolio") for £116 million to an entity owned by Warehouse REIT plc (LSE: WHR) (the "Buyer"). The Buyer will acquire the IMPT Portfolio through the sale and purchase of certain subsidiaries of Industrial Multi Property Trust Limited (the "Transaction").

Hansteen acquired the Portfolio through its successful offer for IMPT plc which was declared wholly unconditional on 25 April 2017. The Portfolio consists of 51 UK multi-let properties offering c.500 leasable units with a total floor area of approximately 1.65 million sq ft and a passing rent roll of £8.0 million per annum at 30 June 2017. The contracted rent roll is currently circa £8.5 million per annum. Approximately 93% by floor area is invested in light industrial property and 7% in workspace and offices.

The Portfolio is being sold on a debt free basis for cash, and the value attributed to the portfolio is £116 million payable upon completion of the Transaction, which is expected to occur at the end of March 2018. There are no conditions to completion.

Commenting on the Transaction, Ian Watson and Morgan Jones, Joint Chief Executives of Hansteen, said: "In line with our intentions set out in the original IMPT offer document dated 22 February 2017, we absorbed the Portfolio into our UK property asset management platform and were in the process of successfully increasing the occupancy and income across the portfolio. However, during the successful implementation of this strategy, we received an unsolicited approach from Warehouse REIT to acquire the Portfolio at a level which provides a return in excess of our initial expectations and which we were willing to accept. In the short term we plan to use part of the proceeds to reduce the balance on our revolving debt facility. Going forward the Board will consider new acquisition opportunities or distributions to Shareholders."

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