Hansteen buys £54m mixed-use UK portfolio
Hansteen has exchanged contracts to buy a mixed-use UK portfolio for £53.7m from St Modwen Properties.
The portfolio comprises 34 properties located throughout the UK with a focus on the North West and the West Midlands. The deal reflects a net initial yield after costs of 9.15% and a capital value of £41 per sq ft.
The acquisition will be funded with current cash resources and a drawdown under the revolving credit facility from the Royal Bank of Scotland.
Hansteen has exchanged contracts to buy a mixed-use UK portfolio for £53.7m from St Modwen Properties.
The portfolio comprises 34 properties located throughout the UK with a focus on the North West and the West Midlands. The deal reflects a net initial yield after costs of 9.15% and a capital value of £41 per sq ft.
The acquisition will be funded with current cash resources and a drawdown under the revolving credit facility from the Royal Bank of Scotland.
The portfolio provides 1.4m sq ft of accommodation, let to more than 200 tenants producing a current rent of £5.25m per year.
Around 85,000 sq ft is vacant and current tenants include Toolstation, Pirelli UK Tyres, Staffordshire County Council and British Steel.
Morgan Jones and Ian Watson, joint chief executives of Hansteen, said: “This portfolio fits perfectly with our buying criteria. There are a number of asset management opportunities and initiatives across the portfolio which provide us with the opportunity to increase the rent roll and create additional value.”
Knight Frank advised St Modwen. Hansteen was unadvised.
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