Blackstone affiliate poised for £500m Hansteen takeover

A newly formed company, indirectly owned by investment funds advised by affiliates of Blackstone, has agreed terms to a £500m takeover of industrial property owner Hansteen. Potter UK Bidco is offering to pay Hansteen’s shareholders 116.5p per share in cash, a 10.3% increase on the closing price per Hansteen share of 105.6p on 17 December. Hansteen’s directors, who control around 5.5% of the voting rights, are recommending the takeover to its shareholders. As at 30 June 2019, Hansteen had net assets of £443.4m. Hansteen’s joint chief executives Ian Watson and Morgan Jones said:“Over the last few years we have been crystallising much of the value created, returning substantial capital and making high returns for shareholders. The offer from Blackstone is a continuation and conclusion of that strategy and we believe provides a highly satisfactory outcome for our shareholders and employees. We have given irrevocable undertakings to vote in favour of Blackstone’s offer in relation to our own shareholdings.” James Seppala, head of Blackstone Real Estate Europe, added:“This transaction is a compelling opportunity to expand our pan-European last-mile logistics real estate company, Mileway, in the UK and it is testament to our long-term belief in investing in the country. We look forward to working with Hansteen’s team to support the growing demand for last-mile logistics real estate across the UK in the years to come.” The takeover offer follows the collapse in September 2018 of Hansteen’s plans to sell around 70% (180 assets) of its UK industrial assets to rival Warehouse REIT. In June 2017, Hansteen sold almost its entire European business, comprising €1.3bn of German and Dutch assets to Blackstone and M7 Real Estate. Peel Hunt is advising Hansteen. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette