HANSTEEN HOLDINGS PLC INTERIM RESULTS. 27 October 2005 to 30 June Morgan Jones and Ian Watson Joint Chief Executives

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Hugh Jeffry Cummings
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1 HANSTEEN HOLDINGS PLC INTERIM RESULTS 27 October 2005 to 30 June 2006 Morgan Jones and Ian Watson Joint Chief Executives July 2006

2 KEY POINTS new company formed by Ian Watson and Morgan Jones set up to invest in European property floated on AIM in late November 2005 raised 125 million Morgan Jones and Ian Watson invested 2.5 million each strategy to replicate previous success with Ashtenne Holdings accounting period - 27 October 2005 to 30 June

3 HANSTEEN STRATEGY achieve consistent, high and realised returns focus primarily on industrial property in Continental Europe UK land with potential to add value through planning changes other opportunistic purchases 3

4 BUSINESS MODEL Hansteen aims to exploit: positive yield gap and gearing rental income yields in Europe substantially above Euro borrowing costs asset management activities vacant units at discount prices hands on approach to marketing portfolio assembly demand for European industrial investment property set to increase resulting in price rises premium prices paid for large ready-prepared portfolios provides value/uplift corporate outsourcing greater owner-occupation in continental Europe opportunities for sale and leaseback 4

5 PROGRESS TO DATE 170 million ( 118 million) invested to date France, Germany, The Netherlands net yield industrials 8%, overall 7.6% 230 million ( 159 million) new bank facility arranged team of 7 people recruited to date profit before tax of 2.8 million achieved in eight months to 30 June 2006 net assets million 5

6 SUMMARY PORTFOLIO to date Square Metres Rent M Cost M HOLLAND 207, GERMANY 50, FRANCE 38, NON-CORE (UK & GERMANY) 27, TOTAL 323,

7 THE NETHERLANDS Netherlands 7

8 EXAMPLES OF PROPERTIES BOUGHT IN THE NETHERLANDS Amersfoort Hoofddorp Space: 52,347 sqm Space: 8,821 sqm Rent: 1,430,000 Rent: 606,000 Tenants include: Excel; Fedex; Tenant: DHL A&D Auto s 8

9 GERMANY Germany 9

499,900 SVK Publishers; and Wiso Logistic Heilbronn

10 EXAMPLES OF PROPERTIES BOUGHT IN GERMANY Remseck, near Stuttgart Space: Rent: Tenants include: 7,478 sqm 499,900 SVK Publishers; and Wiso Logistic Heilbronn Space: Rent: Tenant: 7,700 sqm 853,000 DPD German Parcels 10

11 FRANCE Bordeaux Space: Rent: Tenant 38,380 sqm 800,000 Mitsiu 11

12 WIESBADEN 392 apartments 17 commercial units, in 38 apartment buildings current rent roll 1.4 million pa 18% vacant 12

13 GILSTON 13

14 GILSTON 90 acre greenfield site with existing mixed use consent value uplift opportunity from improving consent mix and satisfying conditions required before consent can be implemented 14

15 PROFIT AND LOSS ACCOUNT 27 October 2005 to 30 June 2006 M Turnover 2.86 C.O.S (0.26) Profit on sales Administration (1.50) Interest 1.62 Pre tax profit

16 CONSOLIDATED BALANCE SHEET as at 30 June 2006 M Investment properties 95.7 Development properties Debtors/Creditors (1.13) Cash 26.9 Deferred tax (0.5) Net Assets nb. Properties have not been revalued 16

17 SUMMARY efficient team platform of contacts in Continental Europe circa 230 million of bank debt to invest pipeline of interesting opportunities which satisfy our buying criteria 17

18 APPENDICES track record biographies 18

19 TRACK RECORD Ian Watson and Morgan Jones founded Ashtenne in 1989 high, consistent, largely realised returns buying, intensively managing and profitably reselling industrial property investments listed Ashtenne in mid 1997 number of opportunistic acquisitions corporate acquisitions non industrial property (i.e. residential, retail, office) Europe trading companies with property assets capitalised on institutional investor appetite for indirect investment fund management business Ashtenne sold to Warner Estate Holdings in mid 2005 achieved net returns to shareholders equivalent to an annual rate of return of 20% 19

20 DIRECTORS BIOGRAPHIES MORGAN JONES, aged 48, is Joint Chief Executive. He is a chartered accountant who qualified with Touche Ross & Co. in 1984 prior to becoming a management consultant in that firm s consultancy division. He joined Arlington Securities plc in 1986 as a development executive and in 1989 left to set up Ashtenne s business with Ian Watson. He was joint Chief Executive of Ashtenne from 1989 until its successful sale. IAN WATSON, aged 46, is Joint Chief Executive. He qualified as a solicitor with Gouldens in In 1986 he became a development executive at Arlington Securities plc and left in 1989 to set up Ashtenne s business with Morgan Jones. He was joint Chief Executive of Ashtenne from 1989 until its successful sale. 20

21 DIRECTORS BIOGRAPHIES JAMES HAMBRO, aged 56 is Non-executive Chairman. James Hambro is Chairman of JO Hambro Capital Management Ltd and a Director of Primary Health Properties PLC and Singer & Friedlander AIM II VCT. He was Nonexecutive Chairman of Ashtenne from 1997 until 16 May STEPHEN GEE, aged 61, Non-Executive Director. Stephen Gee is Chairman of Carluccio s Ltd and was on the board of Ashtenne as a Non-Executive Director from 1990 until 16 May RICHARD MULLY, aged 44, Non-Executive Director. Richard Mully is Managing Partner of Grove International Partners LLP ( Grove ), where he is responsible for investment strategy and management in Europe. 21

Chairman s Review 11 Joint Chief Executives Review and Finance Report 24 Principal Risks and Uncertainties 25 Corporate and Social Responsibility

ANNUAL REPORT 2 01 3 Contents Section 1 Strategic Report Highlights Chairman s Review 11 Joint Chief Executives Review and Finance Report 24 Principal Risks and Uncertainties 25 Corporate and Social Responsibility