Last checked at 1 Nov 2017 07:00
1 November 2017
SEGRO ACQUIRES PRIME MIDLANDS BIG BOX WAREHOUSEIN ASSET SWAP TRANSACTION
SEGRO plc ("SEGRO" or "the Company") has acquired a fully let 390,000 sq ft big box warehouse in the Midlands region of the UK from LGIM Real Assets ("Legal & General"), in exchange for Kingsland Business Park, which is a multi-let industrial estate in Basingstoke, and a balancing cash payment.
The warehouse is located in Crick, a prime location close to junction 18 of the M1 motorway. It is let to Butcher's Pet Care Limited, one of the UK's leading producers of pet food, and is the company's only facility in the UK, having been located in the area since 1976. The warehouse, which was constructed in two stages between 2010 and 2016, is leased for a further 19 years without break. The acquisition price of £41.3 million reflects a net initial yield of 5.0 per cent and offers reversionary potential compared to current rental levels for modern warehousing in the area.
Kingsland Business Park comprises 50 buildings totalling 676,300 sq ft and is located two miles from Basingstoke town centre and three miles from the M3 motorway. The estate has an average lease length of approximately three years and a vacancy rate of less than 5 per cent. The disposal price of £70.0 million reflects a net initial yield of 5.9 per cent and is ahead of book value at 30 June 2017.
Phil Redding, Chief Investment Officer of SEGRO, commented: "This is SEGRO's ninth asset swap, enabling us to focus our portfolio on our core areas and asset types, in particular on big box warehouses in the Midlands and urban warehouses in London and the Thames Valley, whilst mitigating the impact of a disposal on income."
DTRE acted for SEGRO and JLL acted for Legal & General.
ENDS
For further information, please contact:
SEGRO plc
Harry Stokes (Head of Investor Relations and Research)
Tel: +44 (0) 20 7451 9124 / harry.stokes@segro.com
Lizzie Humphreys (External Communications Manager)
Tel: +44 (0) 20 7451 9129 / lizzie.humphreys@segro.com
Richard Sunderland / Claire Turvey / Eve Kirmatzis (FTI Consulting)
Tel: +44 (0) 20 3727 1000
Notes to Editors:
ABOUT SEGRO
SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 6.3 million square metres (68 million square feet) of space valued at over £8 billion, serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries.
See www.SEGRO.com for further information.