Hansteen Holdings, the UK and Continental property investment company, has completed the purchase of a portfolio of six logistics properties in Germany from Dexus Funds Management for 26m euros.
The purchase, which was funded from existing cash resources, reflects an initial yield of 13.77%.
The properties, all good quality distribution warehouses suited to modern occupational requirements, total 127,000 square metres of built space.
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The price represents a capital value per sq ft of £15.25, considerably less than 50% of replacement costs. The portfolio is 95% occupied with a current rent roll of €3.58m, representing a low average rent of €29 per square metre per annum.
Ian Watson, Joint Chief Executive of Hansteen, said: "This is a slightly unusual transaction for Hansteen given the high occupancy and the possibility that one or two of the tenants will vacate over the next year or two.
"However, we believe the portfolio represents fundamentally great value on a vacant possession basis. The fact that in addition it combines a high running yield, off low rents, with potential to add value through asset management initiatives and development opportunities made it irresistible."
NR
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