20 March 2017
London
Reporter: Theo Andrew

Hansteen set to sell German and Dutch portfolios for €1.28 billion


Blackstone Group and M7 Real Estate (RE) are set to acquire the Hansteen Holdings German and Dutch portfolios for €1.28 billion.

Totalling almost 2.3 million square metres, the portfolio consists of 100 properties in Germany and 71 in the Netherlands, valued at €887.5 million and €308.4 million, respectively.

The Oynx venture, a joint venture between Blackstone and M7 RE, is acquiring the portfolio at 90.3 percent occupancy. M7 RE will take on the future management of the portfolio.

Acquired on a debt-free basis, the price represents a premium of approximately €76 million, six percent of the year-end valuation, including an uplift of €34 million over the 31 December 2015 valuation.

According to Hasteen, it expects to create a net cash increase of approximately €750 million, following €57 million in tax deductions and €468 million spent on debt repayments.

The deal, which is subject to shareholder and German Federal Cartel Office approval, is expected to be finalised by the end of June.

Hansteen’s assets will be reduced by 59 percent from £1.74 million to £719 million and will now predominantly be based in the UK, with some properties located in France and Belgium. The company’s debt will decrease by 49 percent from £814 million to £413 million.

Morgan Jones and Ian Watson, joint chief executives of Hansteen, said: “This is a compelling opportunity to crystallise both the revaluation gains from these German and Dutch assets achieved by our active asset management and the gains from foreign exchange movements.”

“The value being realised is around 30 percent higher than the book value at 31 December 2015 when measured in sterling.”

They added: “The sale is in line with our long-term business and portfolio strategy of buying at a low point in the cycle, with low occupancy and rents, adding value through improved asset management and subsequently realising the investment at a higher point in the cycle”.

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BMO adds nine assets to UK portfolio
23 October 2017 | London | Reporter: Theo Andrew
The properties are spread across the office (35.9 percent), industrial (34.5 percent), retail warehousing (22.5 percent) and retail sectors (7.1 percent), reflecting an initial yield of 4.8 percent
Kennedy Wilson Holdings completes $8 billion merger with European arm
20 October 2017 | California | Reporter: Theo Andrew
The $1.98 billion (£1.5 billion) deal equated to an offer of $15.49 (£11.74) per KWE share, a 20 percent premium on the $12.91 (£9.79) per share closing price on 21 April
Aviva acquires Bristol redevelopment
20 October 2017 | Bristol | Reporter: Becky Butcher
Aviva Investors has purchased the first phase of a redevelopment business park in Bristol for £30 million
Coyote names Rob Bould as non-executive director
19 October 2017 | London | Reporter: Theo Andrew
Rob Bould, who has 40 years of real estate experience, will help grow the data platform, which will track, manage and report the performance of real estate assets in real-time
Hammerson expands flagship Parisian shopping centre
19 October 2017 | Paris | Reporter: Theo Andrew
The 11,000-square metre property adjoins its Les Trois Fontaines centre, the firm’s recently refurbished flagship asset in Paris
SELF II reaches €500 million on third close
19 October 2017 | Paris | Reporter: Theo Andrew
The pan-European debt fund achieved the equity through institutional investors from France, Germany and Italy
Encore+ adds Dutch office for €50 million
18 October 2017 | Eindhoven | Reporter: Theo Andrew
The the pan-European open ended core-plus fund is co-managed by Aviva Investors and LaSalle IM, as fund manager and asset and transition manager, respectively