Last checked at 26 Aug 2016 07:00
26 August 2016
SEGRO AGREES SALE OF INDUSTRIAL ESTATE IN HESTON FOR £79.5 MILLION
SEGRO plc ('SEGRO', or 'the Company') has exchanged contracts to sell the Heston & Airlinks Industrial Estate ("Heston Industrial Estate") near Heathrow Airport to Capital Industrial Four BV for £79.5 million.
Heston Industrial Estate is a multi-let industrial estate, located to the north-east of Heathrow Airport close to junction 3 of the M4 motorway, comprising 481,000 sq ft of warehouse space across 47 units. The estate has a vacancy rate of around 1 per cent and a weighted average lease length to break of 5.4 years.
The disposal price reflects a topped-up net initial yield of 5.1 per cent and a small premium to the book value at 30 June 2016. Completion is expected by the end of September.
Phil Redding, Chief Investment Officer at SEGRO, said:
"This disposal reflects both our desire to focus our portfolio on more modern and less management-intensive assets, as well as the continuing, strong investor demand for multi-let warehouse assets in London. We intend to use the proceeds to help fund the development of new warehousing in our core markets."
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
Lindsay Dunford (External Communications Manager)
Tel: Tel: +44 (0) 20 7451 9117 / lindsay.dunford@segro.com
Richard Sunderland / Claire Turvey (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 over six million square metres of space valued at £7.4 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.