Hansteen agrees deals worth more than 40m euros

Hansteen, the FTSE 250 real estate investor, has agreed over 40m euros-worth of investment deals in Germany.

The biggest of these is the acquisition of the German assets of the EIP Fund for €24.5m, which was satisfied from existing cash resources. The price reflects an initial yield of 10.6% and the reversionary yield is more than 14%.

Ian Watson, joint Chief Executive of Hansteen, said: "This portfolio provides excellent diversity of income and is compatible with Hansteen's intensive management approach. With its high vacancy rate it presents a number of opportunities to create significant added value through improving occupancy."

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The company also agreed five investment sales in Germany for a total of €15.9m. The sales comprise properties in Neckarsulm for €2.75m, in Freising for €2.45 million, in Aschaffenburg for €2.3m, in Weiterstadt to the occupier for €8.05 million and three small residential blocks in Padderborn for €370,000.

Together, the properties have a combined rent roll of €2.6m a year from 32 tenants with 41% (34,917 sq m/375,850 sq ft) vacant. The estimated rental value (ERV) of the portfolio is €3.6m a year.

The share price rose 0.31% to 80.25p by 08:50.

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