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UK REIT Hansteen has announced the completion of the acquisition of an industrial portfolio for £147 mln net (EUR 177 mln).

The assets comprise the entire property holdings of industrial space specialist, the Spencer Group of Companies.

The acquisition was carried out by Hansteen and the fund, Hansteen UK Industrial Property Limited Partnership. Hansteen, the investor in UK and Continental European property, is the fund manager and co-investor in the vehicle.

The portfolio comprises 88 assets totalling 381,000 m² of predominantly industrial property located across the UK.

Hansteen has acquired 44 of the assets with a current rent roll of £6 mln and a vacancy rate of 41.6% for £75.2 mln (gross), representing an initial yield of 8%, or 8.51% excluding development land. The investment volume comprised £34 mln of cash from existing resources and £41 mln of new debt facilities provided by Lloyds Banking Group.

The fund has acquired 44 assets, with a current rent roll of £6.4 mln and a vacancy rate of 17.2%, for £75 mln (gross), representing an initial yield of 8.5%, utilising existing and new debt facilities provided by Royal Bank of Scotland.

Following this transaction, assuming gearing of 50% LTV, Hansteen has firepower of approximately £300 mln for further acquisitions. The fund is now effectively fully invested with gross assets of £166 mln and debts of £76 mln.