Last checked at 2 Aug 2012 07:00
2 August 2012
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.
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
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For further information please contact:
SEGRO
Kate Heseltine (Investor Relations Manager): +44 (0) 207 451 9042 / +44 (0)7714 390 537
Tulchan
John Sunnucks/David Shriver: +44 (0) 20 7353 4200
About SEGRO:
SEGRO is Europe's leading owner-manager and developer of industrial property. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange. SEGRO's portfolio comprises £4.8 billion (as at 30 June 2012) of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. The Group serves over 1,400 customers spread across many geographies and different industry sectors. It has 5.2 million sq m of built space and a passing rent roll of £308 million (as at 30 June 2012). For further information see www.SEGRO.com