London-listed Hansteen Holdings announced that Hansteen Property Unit Trust (HPUT) has acquired Saltley Business Park, Birmingham, from LPA Receivers acting for Lloyds Banking Group. The investment volume of £23.3 mln (EUR 27.1 mln) reflects a net initial yield of 9.62%.

The estate comprises a multi-let industrial estate totalling 100,000-m2 in 22 units, which is situated on a strategic, self-contained 19-hectate site on the eastern edge of Birmingham City Centre, with easy access to the M6. It currently generates £2.35 mln per annum, with eight vacant units, equating to 30% vacancy by area. The average unexpired lease term is 3.1 years to expiry and 2.6 years to break options.

The acquisition presents a number of opportunities for adding value, by letting vacant units, re-gearing leases with existing tenants, upgrading and refurbishing units and reorganisation of underused car parking space, Hansteen said.

This deal follows the £27.7 mln acquisition for HPUT of Treforest Industrial Estate near Cardiff, from Segro, announced on 24 December 2010. The 55-hectare estate currently produces £2.78 mln per annum, representing a net initial yield of 9.94%.

Robert Baldwin and Mark Stupples of King Sturge were the LPA receivers on Saltley Business Park.

HPUT, established in 2009, now has a £82.5 mln portfolio. The Fund is 33% owned, and managed by Hansteen.