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Hansteen Holdings plc

Hansteen Holdings buys multi-sector UK property portfolio for £80.3m

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FTSE250 European real estate investor, Hansteen Holdings (LSE: HSTN) has bought a multi-sector portfolio of 61 freehold and leasehold assets, covering 1.2 million square feet, from various subsidiaries of troubled property companies Kilmartin Holdings, Kilmartin Group and Annfield Assets Limited for £80.375 million.

"The portfolio provides a great opportunity to create significant added value through improving occupancy levels and imposing our intensive management approach", Hansteen’s joint chief executive Ian Watson commented.

The portfolio consists of 54 freehold and 7 leasehold properties, with 18 properties in England (48.2% by value), 42 properties in Scotland (49.5%) and 1 property in Northern Ireland (2.3%).

The type of property assets are fairly broad across the portfolio - retail properties make up 30% of the portfolio, industrial properties represent 24% of the portfolio by value, while office space, development land and leisure represent 23%, 15% and 8%, respectively.

Kilmartin Holdings and the Kilmartin Group are currently in receivership, while Annfield Assets is in administration.

"We have reached an exchange in ten days and during this transaction have established sound working practises with the administrators, the receivers and the bank and have consolidated relationships we hope to build further on in the future", Hansteen’s other Joint Chief Executive Morgan Jones added.

According to Hansteen, the portfolio is highly compatible with its intensive management approach and its directors' experience across the UK market. The company said that the portfolio has net annual rent receivable of £5.596 million, which equates to an initial yield of 7% (8.1% excluding land) and it currently has a vacancy level of 58.3%.

Quick facts: Hansteen Holdings plc

Price: £0.90

Market: AIM
Market Cap: £384.14 m
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