AIM-listed Hansteen has launched a new £180m industrial property fund to take advantage of bottom of the market opportunities.
This brings its overall buying power to almost £500m following £194.6m of equity raised at the end of June through a placing and open offer that was underwritten by KBC Peel Hunt.
The Hansteen UK Industrial Property Unit Trust has raised £90m of equity – of which £30m is provided by Hansteen and the remaining £60m from five institutional investors.
It plans to introduce debt once the equity has been invested gearing it at a maximum of 50%.
The fund, which will be focussed on high income generation and growth in net assets, is targeting annual returns, after fees and expenses, of 12% to 15%.
Hansteen will be the property advisor to the fund and will receive an asset management fee and a performance based fee equal to 20% of returns above the marker of 10% a year – which will rise to 30% after the return reaches 15% a year.
Mark Ovens and James Havery who recently joined Hansteen from Warner Estate, where they ran the Ashtenne Industrial Fund will be overseeing the fund. Net income will be distributed quarterly over the six year life of the fund.
Morgan Jones, joint chief executive of Hansteen said: ‘This fund, coupled with £200 million raised recently gives us over £500 million of buying power in a market which is presenting some unprecedented opportunities.
‘In addition to the return on our investment and our management fee we have the opportunity to receive a disproportionate share of any out-performance in the fund we generate.’
Ian Watson, joint chief executive of Hansteen added: ‘We had identified the opportunity to gain further exposure to the industrial property cycle through the formation of limited life funds with third party investors, at the time of our recent fundraising, which we successfully closed in July. We are delighted this has now come to fruition.’