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| Hansteen sees resilience in its principal markets European real estate investment firm Hansteen announces that it is continuing to see resilience in its principal markets of the Netherlands, Germany, Belgium and France. The company also announces the sale of their industrial unit, Rondweg 17 at Wezep in the Netherlands, which has been sold for €1.875 million. The property, which is currently only partially occupied, is being sold above the most recent valuation and the original purchase cost. The purchaser company Companjen Constructies BV, is expected to occupy the vacant element. In addition, the Company announces that during the period from 31 December 2008 to 15 May 2009, it has increased net occupancy, with a reduction in vacant space from 134,000 sq m to 117,000sq m, a move from 13% vacancy to under 12% vacancy, over the period. This reduction, together with the acquisition of the properties at Gross-Rohrheim and Friedberg in Germany and the profitable disposal of the property at Freising, also in Germany, announced with the Final Results in April, has increased the annualised rent roll from €42 million to €44 million, resulting in a yield improvement from 8.4% to 8.6%. Furthermore, Hansteen's annualised interest cost of borrowing has been reduced to approximately 3.5% from 4.7% at 31 December 2008, further increasing the gap between yield and cost of borrowing. Cash collection remains strong and the Company has seen no material increase in rent arrears. Recent lettings include: * At Naninne industrial zone in Belgium, Lecot NV, a distributor of building equipments, has taken a new 3/6/9 year lease on 1,175 m2, at €47,000 per annum. * At Willich in Germany, two new lettings to Fujicolor and HT Torhala have added €76,000 to the annual rent roll. * At Remseck in Germany, existing tenant Supreme Food Service GmbH has extended its existing lease until 2012 and taken the remaining vacant space in the building adding approximately €40,000 to the rent roll. Hansteen also announces that it has appointed Mark Ovens and James Havery, who previously worked with Hansteen's chief executives Morgan Jones and Ian Watson in their Ashtenne Holdings days, in order to strengthen its team. In the UK, the Scottish Office has resolved on appeal to grant outline consent for Hansteen's 90 acre strategic development site at Gilston near Falkirk, Scotland, for a mixed use commercial development including a hotel, car dealerships, offices and industrial use. At the last valuation, this site was in the books at £30,000 per acre. write your comments about the article :: © 2009 Construction News :: home page |