£12 million portfolio acquisition in County Durham

20 November 2019

HANSTEEN HOLDINGS PLC
("Hansteen" or, the "Company")

£12 million portfolio acquisition in County Durham

Hansteen (LSE: HSTN), the urban multi-let industrial property investor, announces that it has purchased a portfolio of seven multi-let, urban industrial estates on Newton Aycliffe Industrial Estate in County Durham, from M&G. The purchase price of £12.0 million reflects a high net initial yield of 8.5% and a low capital value of £38 psf.

The portfolio comprises 53 units totalling 341,620 sq ft, with individual units ranging in size from 820 sq ft to 32,648 sq ft.   The contracted rental income is £1,094,000 per annum (£3.55 psf) with a total current ERV of £1,272,000 per annum (£3.72 psf). The units are let to 40 tenants, which are a mix of local, regional and national companies, on 45 leases providing a diverse and robust income stream.  32,942 sq ft (9.42%) of the space is currently vacant, providing an immediate opportunity to enhance income through letting the vacant units.

The properties are within the wider Aycliffe Business Park, the second largest industrial park in the north east, comprising around 980 acres, 500 businesses and employing more than 10,000 people. The park is the biggest single employment area in County Durham and forms a key part of the north east economy.

Derek Heathwood, UK Property Director at Hansteen, commented: "This purchase fits our acquisition criteria perfectly, being significantly below replacement cost, with low rents capable of further growth, vacant units and in an area where we have significant holdings and a regional team that can add real value".

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HANSTEEN HOLDINGS PLC

Hansteen Holdings PLC (LSE: HSTN) is an industrial property REIT that invests in properties, across the UK, with high yields, low capital costs and opportunity for value improvement.

Founded by Ian Watson and Morgan Jones, 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 June 2017, the Company sold its German and Dutch portfolios for €1.28 billion and is now predominantly UK based. In November 2017, the Company returned £578 million of capital to its Shareholders and in May 2018, a further £145 million was returned to Shareholders.

At 30 June 2019, Hansteen had a property portfolio of some 254 assets with a value of £647 million.

www.hansteen.co.uk