Hansteen To Pay $440M for GPT Portfolio

BERLIN-UK-based REIT Hansteen Holdings has entered into conditional agreement to pay $440 million to acquire a 9.2-million-square-foot German light industrial park portfolio from units of the defunct GPT Halverton, now Internos Investors. The deal, conditional on shareholder approval, will be one of the largest in Germany in the past 24 months.

Sellers are Luxembourg-registered holding vehicles HBI and HBI Delta Sub, owned by BGP, a former JV between Australian fund managers GPT and Babcock & Brown renamed GPT Halverton, but then relinquished as the Australian firms withdrew when the global crisis hit. The portfolio carries an initial yield of 9.2%, with a current vacancy of 24.4%. It consists of 34 freehold industrial properties acquired from 2005 to 2007. If approved, the acquisition will be partially funded by a $347 million bank facility arranged by UniCredit, secured against target assets. The remaining $93.5million – including swap break costs up to $40 million – will be funded from cash resources. For some time, HBI Holding has been in breach of covenants in its bank facility. A shareholder meeting has been called for 1 April.