Last checked at 23 Sep 2014 15:24
23rd September 2014
SEGRO EUROPEAN LOGISTICS PARTNERSHIP ACQUIRES €43 MILLION OF MODERN LOGISTICS ASSETS IN FRANCE, CZECH REPUBLIC AND GERMANY
SEGRO plc ('SEGRO') announces that SEGRO European Logistics Partnership ('SELP') has acquired a portfolio of three modern, fully-let logistics assets in France, the Czech Republic and Germany from Standard Life Investments European Property Growth Fund for €42.9 million (£33.8 million1).
The purchase price represents a net initial yield of 8.4 per cent. The portfolio, which was built between 2000 and 2006, is fully let with a weighted average lease length to the earlier of break or expiry of 1.9 years and generates €3.9 million (£3.1 million1) of passing rent.
SEGRO holds a 50 per cent share of SELP and acts as asset, property and development manager for the joint venture.
Portfolio characteristics: modern warehouses in established logistics hubs
The 68,800 sq m portfolio comprises three logistics assets in France, the Czech Republic and Germany:
· France: The asset in France comprises 25,800 sq m of logistics space, let to ID Logistics, a leading third party logistics provider, and is located in Dugny a northeast suburb of Paris close to Le Bourget airport and Garonor where SEGRO already operates.
· Czech Republic: The Czech Republic asset comprises two warehouses totalling 21,800 sq m, let to three tenants (OTEC, UTi and Schachermayer), all of whom use their premises for logistics purposes. It is adjacent to SEGRO's existing assets and development project in Hostivice (a western suburb of Prague, adjacent to the international airport), ensuring that the local team is familiar with the asset and the occupiers. This acquisition will increase SELP's holdings in the Czech Republic to almost 100,000 sq m.
· Germany: The 21,200 sq m warehouse in the Dusseldorf region was originally built by SEGRO and completed in 2005, and is currently occupied by ASICS, the international sportswear manufacturer. The asset will be vacated in 2015 when the occupier moves into a 74,000 sq m warehouse currently under construction by SEGRO in nearby Krefeld. SEGRO currently manages 453,000 sq m of industrial and logistics space in the Dusseldorf area and believes that occupier demand is sufficiently strong to ensure that the warehouse can be re-let with only a limited void period, as well as potentially extended.
Commenting on the acquisition, SEGRO's Chief Investment Officer, Phil Redding, said:
"This transaction is a good example of our ability to source attractive off-market deals in markets we know well. Together with the €472 million of logistics acquisitions within SELP already completed this year, it also demonstrates our ability to act as a consolidator of the fragmented Continental European logistics market."
1. Based on an exchange rate of €1.27 / £1
ENDS
For further information, please contact:
SEGRO plc
Harry Stokes (Head of Investor Relations and Research) Tel: +44 (0) 207 451 9124
FTI Consulting
Stephanie Highett / Nick Taylor / Giles Barrie Tel: +44 (0) 20 3727 1000
About SEGRO and SEGRO European Logistics Partnership ('SELP'):
SEGRO is a leading owner, asset manager and developer of modern warehousing and light industrial properties, with £4.5 billion of assets (at 30 June 2014, including joint ventures at share) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland. It also develops and owns warehouses in important distribution markets in the UK, Belgium, the Netherlands and the Czech Republic, and offices in Slough and Milan. The Group serves around 1,250 customers spread across a diverse range of industry sectors. It has 5.8 million square metres of built space under management and a gross passing rent roll of £266 million (SEGRO share).
SEGRO European Logistics Partnership ('SELP') is a joint venture in which SEGRO owns a 50 per cent interest. It was established in October 2013 and has €1.6 billion of assets under management (as at 30 June 2014) across six Continental European countries. SEGRO acts as asset, property and development manager for the joint venture.
For further information see www.SEGRO.com/investors.