Hansteen, the industrial property specialist, is raising £194.6m of new equity from a sale of shares to fund its expansion.

The AIM-listed is issuing 267.8m new shares from a placing and open offer through KBC Peel Hunt at a price of 75p each. The price reflects a discount of just 8.5%, or 7p, to Hansteen’s share price yesterday of 82p.

Joint founders and chief executives Ian Watson and Morgan Jones are themselves buying 1.07m shares in the open offer.

Hansteen has no balance sheet constraints with substantial headroom on its banking covenants.

‘We already have the track record and now these additional funds give us the firepower to take advantage of the exceptional buying opportunities available,’ said Watson.

Hansteen was set up in 2005 and has an investment portfolio of mostly European properties valued at €495m. The net initial yield is 8.75%.

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