Hansteen has exchanged on the purchase of two UK industrial assets in Derbyshire and the North East for a total of £41.1m.
The 1.28m sq ft West Hallam Industrial Estate, in Ilkeston, Derbyshire, was bought from DV4 Properties West Hallam, an SPV advised by Delancey, for £27.3m, reflecting a triple net yield of 6.2%. The site is fully let to logistics company Norbert Dentressangle.
Hansteen also exchanged on Belasis Business Park in Billingham, Teesside, a 129,136 sq ft warehouse and 1.678 acres of land for development. The site was purchased for £13.8m, reflecting an initial yield of 7% which will rise to 8.3% on contracted rent.
The site is 84% let to 19 occupiers, generating a total contracted income of £1.15m on a weighted average unexpired lease term of over 10 years.
James Havery, UK director of Hansteen, said: “The income return provided by a very strong covenant on the West Hallam deal has real scope for enhancement through the imminent rent review together with the option of terminating the management agreement and operating that element of the estate ourselves.
“At Belasis, given that a good proportion of the park is securely let, our local asset management team can concentrate on the 16% void and the shorter unexpired terms. The composition of the asset provides us with a variety of exit routes, be that sales of long dated investments, sale to occupiers, or retaining as a whole and working through the void.”
