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FTSE 250 listed European-focused industrial property specialist SEGRO has completed the disposal of the MPM site in Munich earlier than originally planned. The sale €65m sale (approximately 56m pounds), first announced on January 8th, was originally pencilled in a £53m and was expected to be completed in March. The MPM site is a fully-let 155,000 square metre engineering and manufacturing facility acquired by SEGRO in 2007. Speaking last month, the company said: "This is the first of the large non-strategic assets (identified as non-core at SEGRO's Investor Day in November 2011) to be sold in Continental Europe."
what a brill idea,feed the kids on free cafe sugar at no cost to yourself whatso ever,leaving you more spare cash to invest..... awesome thinking,shrewd aswell..lol.lol... the kids are happy at the same time.double WAMMY......
sounds like uve corrupted the kids tooooo...... nice work..lol...
i bet the newsageant staff love you,ime suprised ya dont get kicked out for loitering..lol.. seen there trades go thro on the cnbc ticker,not very often tho az their high sp keeps the volume low.... gorgia,thats where one of my oilies is.(not the us one)....
got the mail this morning,avnt read it yet ,but saw them,thats the first page i look at.....
morning..... this az a spread on it on page 78 of the midas page...sunday mail............................ /////////\\\\\\\\////////\\\\\\\\\\//////
Segro: Societe Generale reduces target price from 290p to 280p and keeps its buy recommendation.
SEGRO: Deutsche Bank ups target from 310p to 330p, buy rating kept.
Broker comment Broker opinions differed slightly on the tenor of these results, although price targets are very similar. Jefferies, with a 'hold' rating and a price target of 251p, commented: "The IMS [Interim Management Statement] shows robust performance for a company where the market thinks the dividend is at risk (we don't). "Voids (9.0% vs 9.1%) are reasonable but the underlying leasing mechanics are much improved; net new rent of £2.6m was secured in 3Q12 (3Q11 £0.3m) and developments added £7.3m or £13.4m year-to-date. There was no valuation; prime is well bid while we see secondary values falling but the debate is when valuers recognise this trend." Investec, with a 'buy' and a price target of 250p, wrote: "Today's statement tone is more upbeat than we have seen for some time, although this is clearly in the context of a difficult macro environment for Segro, and during its non-core asset disposal programme. "Nonetheless, lettings were healthy, the mainly-pre-let development programme progressed strongly, and acquisitions of prime logistics in France confirm the company's ambitions on its steady-state income-generative strategy."
Across the group, it now has 15 developments contracted or under construction, representing £14.8m of future annualised rental income and £85.3m of future capital expenditure. The development pipeline is 78% pre-let. Having achieved its full-year disposal target, with the competion of £505m of non-core asset disposals it does not expect a similar pace of disposals to continue over the balance of the year. Despite Eurozone concerns, its view is that investment market appetite remains strong for high quality industrial assets in the strongest locations in the UK, France, Germany and Poland, and the values of such assets appear to be holding up well. However, demand for secondary assets in less attractive locations continues to be more limited. As at September 30th, net borrowings were unchanged from June 30th at £2bn. Its weighted average maturity of gross borrowings is 8.7 years, with no significant debt maturities before 2014.
The company commented: "We have continued to see reasonable enquiries for new and existing space in most of our core markets although, with many customers continuing to take longer than normal to commit, the amount of new rent contracted in the period was at a similar level to the first two quarters of the year. Against this, the 'take-backs' in the period were significantly down on the first two quarters and on the equivalent period last year. Overall rental levels have generally been stable, with average headline rents continuing to be above the December 2011 valuers' ERV [estimated market rental value] and with rent free incentives remaining under 10% of headline rents." Its development programme is very active, completing ten developments since the start of July, of which 71% are already let. It also signed three new pre-let developments in the period, totalling 35,500 sqm. In the year-to-date, 161,500 sqm of new developments were completed, providing expected rental income of £10.9m when fully let.
SEGRO, the European-focused industrial property specialist, has made further operational progress during the third quarter. The FTSE-250 company, with £4.8bn of assets, saw existing space generate new annualised rental income of £2.6m (Q3 2011: £0.3m) and a further £5.5m (Q3 2011: £5.3m) of new annualised rental income from the take-up of developments complete in the period. There was a slight fall in the vacancy rate, which dropped to 9.0% (June 30th (9.1%), although this rate excludes any impact from Neckermann, which has filed for insolvency and contributes about £12m a year to SEGRO's rental income. SEGRO continues to receive rental payments through bank guarantees and expect 2012 Neckermann's rents to be covered by them. It will take back about 8,000 square metres (sqm) of space later this month and expects the company to vacate the rest of the 309,000 facility by February 1st 2013.
SEGRO: Jefferies keeps hold rating and 251p target; Investec keeps buy rating and 250p target.
When I worked at this place the sp was over £8, should never have let me go muahahahahaha!
typo on previous post Segro, the industrial property specialist, has completed the acquisition of a portfolio of eight French logistics assets from Foncière Europe Logistique, a subsidiary of Foncière des Régions. The firm paid €160.8m (£129.7m) in exchange for 13 buildings, which are 10 years old on average, totalling approximately 255,000 sq m of lettable space and currently generating €14.2m (£11.5m) of annualised rental income. Chief Investment Officer, Phil Redding, said: "This acquisition significantly enhances SEGRO's existing platform in the Ile de France region and in Lyon and marks another positive step forward with our strategy to expand our portfolio of high quality logistics assets located in the strongest markets."
ommercial vehicle hire company Northgate said despite economic headwinds affecting both its UK and Spanish businesses, it continues to trade in line with company expectations. In the UK, vehicle utilisation in the period to September 18th averaged at 89%, in line with that experienced in the year ended April 30th 2012. Vehicles on hire fell from 46,400 at April 30th 2012 to 44,800 at September 18th 2012, a decrease of 1,600 units compared to a fall of 2,400 in the same period last year. There was also a reduction in fleet size of 2,000 since April 30th 2012 to 50,900. Hire revenue per rented vehicle has remained stable since the beginning of the financial year, it said. The used vehicle market remains strong, with residual values in line with those experienced in the year ended April 30th 2012, the group explained. In Spain, vehicle utilisation in the period to September 18th averaged at 90%, in line with that experienced in the year ended April 30th 2012. Vehicles on hire in Spain have remained stable since April 30th 2012, with 34,000 at September 18th 2012. Hire revenue per rented vehicle fell by 2% over the period. The fleet size reduced by 700 since April 30th 2012 to 37,700. "Since the year end, the used vehicle market in Spain has remained strong, with improved residual values per vehicle compared to the previous financial year," Northgate said. Net debt and gearing continue to fall.
SEGRO: UBS downgrades to neutral, target cut from 250p to 240p.
Not sure if i agree with their strategy of selling "Non Core" assets ie regional sheds The latest lot were showing a running yield of 8..4% a significant buffer over borrowing costs To cap it all to squeeze the sale they are having to pay rents on empty space which comes straight off the bottom line.Active management brings results The regional industrial estates have served them well in the past.Hansteen are hoovering them up
Shares of SEGRO raced ahead on Thursday morning after the industrial property specialist's interim results, but Jefferies has maintained its 'hold' recommendation on the stock, saying that 'the hard work starts' in the second half. Jefferies said in a research note: "With good progress selling UK non-core assets (£503m year-to-date), the focus has shifted to the European non-core assets which will be more difficult.
Commenting on the disposal Phil Redding, SEGRO's Chief Investment Officer, said: "This portfolio sale marks another important step forward in the delivery of our strategy and means that we have now completed a significant part of our non-core asset disposals in the UK. This positions us well to focus on non-core disposals in Continental Europe." 1 One of the 10 estates within the portfolio, located in South Feltham, will be sub-sold by the purchaser to BP Pension Fund
SEGRO completes sale of £111.0 million of UK regional assets SEGRO, Europe's leading owner-manager and developer of industrial property, is pleased to announce that it has completed the sale of a portfolio of 10 non-core UK regional industrial estates for £111.0 million to a large institutional UK fund1. The portfolio being disposed of comprises 10 predominantly older, secondary, multi-let industrial estates located in Portsmouth, Bristol, Yate, South Feltham, Sunbury, Crawley and Bishops Stortford. The estates comprise approximately 160,000 sq m of lettable space. At 30 June 2012, the portfolio had a vacancy rate of 11.2 per cent by ERV and a weighted average unexpired lease term of 3.2 years to earliest break. The sale price represents a net initial yield of 8.4 per cent, or 8.9 per cent with the benefit of lease incentive top-ups. The sale proceeds, net of lease incentive top-ups, are approximately 3.0 per cent above the 30 June 2012 book value. Including this transaction, SEGRO has announced or completed disposals of £503 million in the year to date, at the top end of our £300-500 million guidance range for non-core disposals during 2012.
http://www.investegate.co.uk/Article.aspx?id=201208020700131130J
Rent has been paid by Neckermann up to the end of July 2012. SEGRO holds bank guarantees which should cover rent and other amounts due in respect of the site over the remainder of 2012, in the event of future non-payment by Neckermann. SEGRO is seeking to identify both alternative customers and alternative uses for the Frankfurt site in the event that Neckermann exits the facility. However, given the bespoke nature of much of the facility, there is a significant risk that, from the beginning of 2013, SEGRO will be unable, at least in the short term, to replace the rent currently being generated from Neckermann. At 31 December 2011, the Frankfurt site was valued at £86 million. In light of recent events, including the assumption that Neckermann will vacate the site, SEGRO's independent valuers, CBRE, indicate that this will fall to approximately £43 million as at 30 June 2012. Neckermann also leases from SEGRO a logistics facility at Alzenau, approximately 35 kms east of Frankfurt. This 25,000 sq m building has, in turn, been sub-let by Neckermann to a third party until the end of 2012 to support a logistics activity unrelated to Neckermann's business. In 2011, rental income received in respect of this building totalled approximately £0.8 million. SEGRO holds a bank guarantee covering 3 months rent in the event of non-payment by Neckermann and in due course expects to be able to re-lease this space in the event that the Neckermann lease is terminated. SEGRO will update the market further when appropriate.
Further statement re: Neckermann In a press release published today, Neckermann.de GmbH ('Neckermann'), the Frankfurt based mail-order company, announced that it will today file for insolvency proceedings. This follows an announcement on 27 April 2012 in which Neckermann advised that, in order to remain viable, it needed to restructure its operations around its e-commerce offering. SEGRO owns a 309,000 sq m facility in Frankfurt, of which 291,000 sq m is currently occupied by Neckermann. This principally houses the company's head office staff, together with its catalogue and clothing operations. In 2011, rental income received from Neckermann in respect of the site totalled approximately £12 million. Since April 2012, SEGRO has been in extensive discussions with Neckermann and its owner, Sun Capital Partners, Inc., regarding the Frankfurt lease and future plans for the site. SEGRO has been both proactive and constructive in exploring ways to restructure Neckermann's lease (which expires in October 2017) in order to help address the company's financial situation and accommodate its recent plans to reduce its Frankfurt operations. Neckermann's decision to file for insolvency proceedings means that SEGRO must now however await further developments in order to clarify Neckermann's future requirements.
http://www.investegate.co.uk/Article.aspx?id=201207181600429861H