Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksSegro Regulatory News (SGRO)

Share Price Information for Segro (SGRO)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 903.80
Bid: 902.60
Ask: 903.20
Change: 11.80 (1.32%)
Spread: 0.60 (0.066%)
Open: 901.80
High: 904.00
Low: 890.00
Prev. Close: 892.00
SGRO Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Acquisition

19 Dec 2011 07:00

RNS Number : 1995U
SEGRO PLC
19 December 2011
 



Acquisition of the UK Logistics Fund

 

SEGRO and Moorfield Real Estate Fund II (MREF II) are pleased to announce that their recently established UK Logistics (Jersey) Limited Partnership joint venture has exchanged contracts to acquire the UK Logistics Fund ("UKLF") for £314.7 million in cash on a debt free, cash free basis from Hermes Real Estate Investment Management Limited, Legal & General and LaSalle Investment Management.

 

The UKLF portfolio comprises 14 prime logistic warehouse units plus one development site in 12 locations on or near main arterial roads in established distribution areas across the UK. The portfolio has a total lettable floor space of 404,100 sq m (4.35 million sq ft) with 64 per cent of the space by value located in the South of England. Current occupiers include Tesco, Sainsbury's, GKN Aerospace, Royal Mail, Booker and Exel UK. The UKLF portfolio currently has a weighted average lease length to expiry of 13.3 years (11.7 years to first break options) and a vacancy rate of 16.0 per cent by rental value. This vacancy comprises two grade A warehouse units in Corby and Sheffield. In 2011, the portfolio will show a net income of around £18 million per annum and, at acquisition, the contracted rent is approximately £21 million per annum.

 

UK Logistics (Jersey) Limited Partnership is a 50/50 joint venture established by SEGRO and MREF II for the purpose of acquiring UKLF. Under the terms of the joint venture, both Moorfield and SEGRO will undertake strategic investment and asset management roles and SEGRO will become the property manager of the UKLF portfolio. In order to finance the acquisition (including transaction costs), both partners will make a contribution to the UK Logistics (Jersey) Limited Partnership of around £65 million of equity investment. In addition, the joint venture has agreed, subject to due diligence and completion of documentation, a 5 year bank facility of up to £189 million with Metropolitan Life Insurance Company and DekaBank secured on the UKLF assets. Laxfield Capital acted as arranger to Metropolitan Life Insurance Company.

 

The purchase price represents a net initial yield of 6.3 per cent on acquisition, rising to 7.7 per cent when the two vacant units become occupied. The initial yield on each partners' equity investment in the joint venture is 9.4 per cent, rising to 12.7 per cent when the vacant units become occupied.

 

The acquisition is currently expected to complete by the end of January 2012.

 

Commenting David Sleath, SEGRO's Chief Executive, said:

 

"This transaction represents a material step forward in the execution of our recently announced strategy to expand our logistics portfolio in partnership with third party investors. The purchase of the high quality UKLF portfolio, with its strong customer base and long lease maturity profile, significantly enhances our UK logistics presence and gives us critical mass in one of our core markets. The portfolio offers both a high quality current income stream and the potential to add further value through active asset management."

 

Marc Gilbard, Chief Executive of Moorfield, added:

 

"Moorfield is the fund manager of opportunistic capital on behalf of blue chip investors and this acquisition will enable us to participate in an institutional grade real estate portfolio with a very experienced partner where opportunistic returns are possible. The UK market is materially undersupplied with good quality distribution property, yet this is currently one of the few sectors showing growth and rising demand. The UKLF portfolio offers us the opportunity to engage with high quality tenants, improve income profiles and enhance value by proactive asset management."

 

For further information please contact:

 

SEGRO

+44 (0) 207 451 9110

Justin Read (Finance Director)

+44 (0) 207 451 9042

Kate Heseltine (Investor Relations Manager)

Tulchan Communications

+44 (0) 20 7353 4200

John Sunnucks/David Shriver 

 

About SEGRO: SEGRO is Europe's leading developer and owner of industrial space. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange. SEGRO's portfolio comprises £5.4 billion of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. SEGRO currently has £930 million of logistic assets under management in the UK, Germany, France, Benelux, Poland and the Czech Republic. The Group serves over 1,600 customers spread across many geographies and different industry sectors. It has 5.5 million sq m of built space and a passing rent roll of £340 million (as at 30 June 2011). For further information see www.SEGRO.com

 

About Moorfield: Moorfield Group (Moorfield) is a UK real estate and related private equity fund manager and investor with some £2.5 billion of assets and geared cash under management through the Moorfield Real Estate Funds (MREFs). Moorfield directly acquires single or multiple assets, or indirectly invests through corporate vehicles, including joint ventures. Moorfield supports entrepreneurial management teams that want to grow their real estate businesses or that want to take specific advantage of market circumstances. Moorfield also provides mezzanine and structured finance solutions where appropriate as well as acquiring debt whether related to single asset, multiple asset or corporate structures. For further information, visit: www.moorfield.com.

 

The UKLF portfolio: The UKLF portfolio comprises assets in the following locations:

·; Western Approach, Avonmouth

·; Bicester Distribution Park, Bicester

·; Birmingham Mail Centre, Birmingham

·; Bardon, Leicestershire

·; DIRFT, Daventry

·; Hatfield Business Park, Hatfield

·; Rye Park Depot, Hoddesdon

·; Snodland, Maidstone

·; Keypoint Distribution Park, Swindon

·; Tunnel Avenue, West Thurrock

·; Mitchell Road, Corby

·; Shepcote Lane, Sheffield Site 8020 - Western Approach, Avonmouth (Development site)

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQTPBITMBMBBRB
Date   Source Headline
28th Feb 20246:00 pmRNSSegro
28th Feb 20247:00 amRNSRESULTS OF PLACING AND RETAIL OFFER
27th Feb 20245:11 pmRNSRETAIL OFFER VIA PRIMARYBID
27th Feb 20244:59 pmRNSPLACING TO FUND PROFITABLE GROWTH OPPORTUNITIES
31st Oct 202312:00 pmBUSTotal Voting Rights
18th Oct 20237:00 amBUSTrading Statement
13th Oct 20232:45 pmBUSHolding(s) in Company
29th Sep 20232:00 pmBUSTotal Voting Rights
19th Sep 202312:00 pmBUSScrip Dividend Scheme – Application for Listing
1st Sep 20232:45 pmBUSHolding(s) in Company
1st Sep 202312:00 pmBUSBlock listing Interim Review
31st Aug 202312:00 pmBUSTotal Voting Rights
18th Aug 20232:16 pmBUSHolding(s) in Company
17th Aug 20232:00 pmBUSScrip Dividend Scheme – Scrip Calculation Price
15th Aug 20232:15 pmBUSHolding(s) in Company
15th Aug 202310:35 amBUSCANCELLATION OF REMAINING OUTSTANDING £225,000,000 6.75 PER CENT. NOTES DUE 2024 (THE “NOTES”) (ISIN: XS0107099466)
8th Aug 20231:48 pmBUSHolding(s) in Company
4th Aug 20233:27 pmBUSHolding(s) in Company
1st Aug 202312:00 pmBUSDirector/PDMR Shareholding
31st Jul 202312:30 pmBUSTotal Voting Rights
27th Jul 20233:59 pmBUSConfirmation of 2023 Interim Dividend Timetable
27th Jul 20237:00 amBUSRESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2023
30th Jun 20233:00 pmBUSSEGRO Completes £120 Million Land Acquisition to Pave the Way for a New Rail Freight Terminal and Logistics Scheme at Radlett, Hertfordshire
30th Jun 202311:51 amBUSTotal Voting Rights
16th Jun 20231:02 pmBUSREDEMPTION OF REMAINING 6.750% NOTES DUE 2024
5th Jun 202311:44 amBUSHolding(s) in Company
2nd Jun 20231:30 pmBUSDirector/PDMR Shareholding
31st May 20233:30 pmBUSTotal Voting Rights
30th May 202312:50 pmBUSHolding(s) in Company
17th May 20237:00 amBUSStatement re Expansion of Executive Committee and Confirmation of COO Retirement Date
16th May 20231:00 pmBUSDirector/PDMR Shareholding
9th May 202312:00 pmBUSAdditional Listing
3rd May 20232:00 pmBUSDirector/PDMR Shareholding
28th Apr 20231:00 pmBUSScrip Dividend Scheme – Application for Listing
20th Apr 20232:13 pmBUSResult of AGM
20th Apr 20237:00 amBUSSEGRO plc: Trading Update
12th Apr 20234:10 pmBUSHolding(s) in Company
27th Mar 20233:08 pmBUSDirector/PDMR Shareholding
23rd Mar 202312:15 pmBUSHolding(s) in Company
23rd Mar 202312:00 pmBUSHolding(s) in Company
23rd Mar 202311:00 amBUSScrip Dividend Scheme – Scrip Calculation Price
22nd Mar 202311:00 amBUSHolding(s) in Company
21st Mar 202310:30 amBUSHolding(s) in Company
20th Mar 20233:38 pmBUSHolding(s) in Company
14th Mar 202312:15 pmBUSHolding(s) in Company
13th Mar 202312:43 pmBUSHolding(s) in Company
9th Mar 20231:32 pmBUSAnnual Financial Report
8th Mar 20233:00 pmBUSHolding(s) in Company
7th Mar 20233:30 pmBUSHolding(s) in Company
6th Mar 20233:58 pmBUSDirector/PDMR Shareholding

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.