Hansteen Holdings and listed rival Warehouse REIT have ended discussions over Hansteen’s sale of a portfolio of UK industrial assets.
In a stock exchange announcement Hansteen, which has been winding down its assets over the past four years, said that “the parties have been unable to agree terms and consequently the discussions have been terminated”.
A potential deal was revealed by EG in July that would have seen Hansteen sell £460m of assets – almost 70% of its portfolio – to listed competitor Warehouse REIT.
At the time Hansteen said: “The acquisition of the portfolio could constitute a reverse takeover for Warehouse REIT under the AIM Rules for Companies. However, the disposal of the portfolio will not involve a takeover of Hansteen, or the sale of any shares in Hansteen to Warehouse REIT.”
Trading in Warehouse REIT’s shares was suspended during negotiations but will now be restored.
The deal would have been transformational for both companies and was indicative of the tidal wave of capital flooding into the UK and European logistics property market, as investors seek to take advantage of rising rents and values underpinned by the expansion of online retailers.
The deal would have more than doubled the size of Warehouse REIT, which currently owns around £300m of assets and only listed last September, raising an initial £150m.
Based on valuations from the end of last year, the sale will leave Hansteen, which was floated in 2005, with £120m of standing properties in the UK and 452 acres of land valued at £51.7m in total. It also owns £31.7m of properties in France and Belgium.
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