Hansteen has announced that its board has agreed to dispose of its German and Dutch portfolios for €1.28 billion to funds advised by affiliates of The Blackstone Group L.P. and M7 Real Estate. Hansteen says that the price represents a premium of approximately €76 million (6 per cent.) to the Year End Valuation which itself included a valuation uplift of €34 million over the 31 December 2015 valuation. The portfolios are being sold on a debt free basis for cash, and the value given to the German and Dutch portfolio is €1.28 billion payable upon Completion (less a deposit of €50 million which has been paid), subject to a net asset value adjustment post-Completion. All latent capital gains tax liabilities incurred in relation to the Transaction will be shared on an equal basis between the Company and the Buyer.
Hansteen says that the disposal realises the value in the portfolios at a time when not only are they at historically high levels of occupancy and rent for the period of Hansteen’s ownership but also the Euro/Sterling exchange rate is favourable. Completion is expected to occur before the end of June 2017. Conditions to Completion include Hansteen’s Shareholder approval and the Buyer obtaining anti-trust clearance in Germany. Following Completion and repayment of the debt secured against the German and Dutch portfolios (and satisfaction of other incurred costs) Hansteen says that it intends to distribute a substantial portion of the net cash proceeds of the Transaction to its Shareholders.
Hansteen Proposes disposal of its German and Dutch portfolio for €1.28 billion : HSTN