Ashtenne Holdings Adds Assets in Spain, Holland, Belgium

LONDON-The locally headquartered property investment and management firm Ashtenne Holdings plc has acquired three industrial properties totaling 575,000 sf and located in three different countries. The seller was Collins & Aikman, an American-owned motor industry provider that has inked long-term leaseback agreements for all three properties. The properties are located in Spain, Holland and Belgium. The purchase price was £8.8 million ($15.8 million). Collins & Aikman has signed 15-year leases for the properties. The combined initial annual rent is about £1.1 million (about $2 million).Ashtenne CEO Morgan Jones says the investment is the company’s third venture into Europe where the company has been able to work with a corporate occupier. In the UK, Ashtenne has completed sale/leaseback transactions with the likes of Rolls Royce, William Baird, Marconi, Visco-Suisse and Corus. In April 2003, Ashtenne undertook a sale and leaseback with the Rexel Group throughout Europe in six different countries. CB Richard Ellis represented Collins & Aikman in the transaction. Ashtenne’s real estate advisors were King Sturge.Ashtenne also recently announced 182,000 sf of leasing activity at its 550,000-sf logistics warehouse park near Utrecht, Netherlands. The newly signed tenants include Excel, the UK-based third party logistics company, as well as FedEx Express Europe and a Dutch auto dealer.Exel took 130,480 sf on a rolling contract while FedEx and A&D Autos have both signed five-year leases with an option to renew for another five years. FedEx leased 29,000 sf at a rent of £3.40 per sf (about $177,000 per year), while A&D Autos will occupy 22,700 sf of space at a rent of £3.50 per sf ($134,500 per year).Ashtenne acquired the property in October 2003 from Hays plc for £8 million ($14.5 million) subject to a rent guarantee agreement. The warehouse, which was vacant at the time of purchase, has been substantially refurbished to include the installation of sprinklers throughout. Ashtenne CEO Ian Watson says the acquisition is an example of Ashtenne’s strategy of working with organizations seeking to dispose of assets surplus to their requirements. “We have been able reduce the rental guarantee significantly to the benefit of the vendor … .,” he says.