Property group snaps up four Welsh sites
Property investment company Hansteen has acquired a portfolio of seven multi-let offices and a portfolio of five industrial estates in a deal worth more than £35m, including four sites in Wales.
The group acquired industrial estates in Queensway Meadows in Newport, the home of snack bar manufacturer Halo Foods and Carlsberg-Tetley, and Pontnewynydd Industrial Estate in Pontypool, Gwent, as well as sites in Merthyr Tydfil and Barry.
The industrial portfolio includes 203,969 sq ft of floor space, with a low vacancy of 4 per cent, and includes a site in Leicestershire.
The office portfolio includes seven multi-let offices in Woodford Green, Witney, Bury, Coventry, Chesham, Stevenage and Waterlooville. It extends to 286,091 sq ft of which 14.3 per cent is vacant.
The combined purchase price of £36.2m reflects a yield on passing rents of 9 per cent gross of acquisition costs and an overall capital value of £73.80 per sq ft.
The purchase was made by Hansteen Holdings on behalf of Hansteen UK Industrial Property Unit Trust II.
James Havery, director UK of Hansteen, said: "Our regional network will incorporate the assets into their respective portfolios and we expect to see early rental performance as a result.
"As we approach the end of HPUT II's investment period in March 2015, these acquisitions are both timely and accretive. We have further acquisitions under offer but still have firepower for assets that demonstrate strong property fundamentals and to which we can apply our particular skill set."