Britain's Hansteen to sell German, Dutch industrial properties for $1.4bn
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.
The price represents a premium of approximately €76 million, 6 percent. The year end valuation included a valuation uplift of €34 million over the December 31, 2015 valuation.
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 intends to distribute a substantial portion of the net cash proceeds of the transaction to its shareholders. ■
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