Hansteen Holdings sells off Vernon Park as part of £76.4m disposal package
PROPERTY investment firm Hansteen Holdings has sold its Vernon Park industrial estate in Wolverhampton as part of a UK assets sale worth £76.4m.
The deal reflects a net initial yield of 7.1%.
Vernon Park – situated adjacent to Junction 1 of the M54 – was sold for £7.8m to Colliers Capital, achieving a 7.2% net initial yield on the buildings and £275,000 per acre on the development land.
The total disposal shows a profit of £10.8m over gross acquisition cost and £6.9m over December 2012 valuation.
As some of the properties were in funds that Hansteen manage and co-invest in, its share of the profit will be £4.2m. The disposals comprise 16 individual assets and a portfolio of 11 estates. The sales include schemes in Essex and Sussex and across the South West, as well as Vernon Park.
Vernon Park comprises three high specification warehouse units and a 6.9 acre development site acquired as part of the Kilmartin portfolio in 2010.
One unit was sold on a long leasehold basis in 2012. The remaining properties of 30,936 sq ft and 55,724 sq ft were let to Joseph Joseph and Mann + Hummel UK on a five and a 12 year term respectively.
Morgan Jones, joint chief executive of Hansteen, said: “These sales are precisely in line with our strategy of buying at high yields with significant vacancies, managing the properties intensively through our teams on the ground, and then selling at lower yields to satisfy institutional demand.”
