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Hansteen, the London-listed investor in UK and Continental European real estate, has continued its expansion by acquiring a multi-sector portfolio of 61 properties in the UK. The investment volume of £80.4 mln (EUR 92 mln) reflects an initial yield of 7%, or 8.1% excluding land.

The 113,000-m² portfolio - which has a vacancy rate of 58.3% - was purchased from receivers for various subsidiaries of Kilmartin Holdings and Kilmartin Group and the administrators of Annfield Assets. The assets generate net annual rent of £5.6 mln.

The transaction comes a month after Hansteen signed a conditional agreement to acquire a German industrial property portfolio from HBI and HBI Delta Sub for around EUR 330 mln. Days before that deal, Hansteen announced it was no longer considering making an offer for the EUR 300 mln listed Kenmore European Industrial Fund (KEIF).

The Kilmartin transaction involves 54 freehold and seven leasehold properties. Eighteen of the properties are in England, 42 properties are in Scotland and one property is located in Northern Ireland. Retail assets make up 30% of the portfolio by value; industrial assets make up 24%; offices 23%; development land 18% and leisure 8%.

Scottish properties account for just under 50% of the portfolio by value and England makes up just over 48%.

The acquisition of the portfolio is to be funded from Hansteen's existing cash resources. Ian Watson, joint CEO of Hansteen commented: 'The portfolio provides a great opportunity to create significant added value through improving occupancy levels and imposing our intensive management approach.'

Morgan Jones, also CEO, added: 'We have reached an exchange in ten days and during this transaction have established sound working practises with the Administrators, the Receivers and the Bank and have consolidated relationships we hope to build further on in the future.'