Knowsley-based Spencer Group has offloaded its entire portfolio of commercial property in a deal worth s150m.

The 88 assets have been acquired in two separate deals by Hansteen Holdings and the Hansteen UK Industrial Property LimitedPartnership.

Spencer was founded by Jim Spencer and until the economic downturn had been on a upward trajectory.

It secured a s200m debt facility from Bank of Scotland, now part of Lloyds, in 2008 but in the year to April 2010, the company  made a s3.5m loss and last year breached its loan covenants. Mr Spencer resigned from the firm in late 2010.

The portfolio comprises some 88 assets totalling 4.1m sq ft of predominantly industrial property located across the UK.

Hansteen Holdings has acquired 44 of the assets with a current rent roll of s6m  and a vacancy rate of 41.6% for s75.2m, representing an initial yield of 8%, or 8.51% excluding development land.

This was completed using s33.9m of cash from existing resources and s41.3m of new debt facilities provided by Lloyds Banking Group.

Hansteen UK Industrial Property has acquired 44 assets, with a current rent roll of s6.4m and a vacancy rate of 17.2%, for s74.8m, representing an initial yield of 8.5%, utilising existing and new debt facilities provided by Royal Bank of Scotland.

Morgan Jones, joint chief executive of Hansteen, said: "The portfolio is highly compatible with Hansteens intensive management approach and the team's experience across the UK market.

"It has strong fundamentals and a high vacancy rate providing a great opportunity to create significant added value through improving occupancy and imposing our own approach."

Jim Spencer took over what was then the family scrap metal business in the 1950s. He took a strategic decision to switch from steel stockholding to property during a time of economic turmoil in the 1980s.

When approached by LDP Business Spencer Holdings issued a no comment.