PROPERTY investment company Hansteen has snapped up seven German industrial estates and agreed to buy three more from developer Segro, as part of a £36m deal, the companies announced yesterday.
Contracts have been exchanged on the first seven sites, with the final three likely to be completed by the first quarter of 2015. The commercial properties are located in enterprise areas in Germany, including Aachen, Hannover, Darmstadt and Willich.
“We are pleased to have assembled these high-yielding assets at their current vacancy levels and relatively low rents as we believe they offer significant reversionary potential. Occupier demand in Germany for this type of property remains strong and we are now beginning to see significant capital interest in the sector too,” Ian Watson, joint chief executive of Hansteen said yesterday.
In a separate deal, the group also acquired another unit in Germany from Tetra Pak and a manufacturing head office unit from Kungsleden. Hansteen said the Segro acquisitions will produce a combined passing rent roll of €5.27m per annum from 22 tenants, reflecting an initial yield of 9.3 per cent. This could rise to €6.69m per annum, it added.