Last checked at 22 Jul 2013 07:00
22 July 2013
SEGRO announces the sale of IQ Winnersh for £245 million
SEGRO is pleased to announce that it has exchanged contracts for the sale of IQ Winnersh for £245.1 million in cash to a joint venture between Oaktree Capital Management LP and Patrizia AG.
IQ Winnersh is a 118,200 sq m mixed use suburban office and light industrial business park which has been developed over the past 40 years, predominantly by SEGRO, and is located close to junction 10 of the M4, near Reading. Following the letting of 3,400 sq m at the newly refurbished E2 office building, announced in April, it has a vacancy rate of 7.5 per cent and a weighted average unexpired lease term to break of 5.5 years. The sale includes 4 hectares of adjacent development land.
The sale price represents a net initial yield of 5.8 per cent, or 7.4 per cent including the benefit of rental guarantees and top-ups in relation to lease incentives. The net sale proceeds, after deducting the top-ups, are approximately 12 per cent above the historic December 2012 book value, adjusted for capital expenditure since that date.
Including this transaction, which is expected to complete at the end of July 2013, SEGRO will have completed or announced disposals of £4371 million since the start of the year. Proceeds from the sale will initially be applied to reduce net debt.
Commenting, Phil Redding, SEGRO's Chief Investment Officer, said:
"We are very pleased to have been able to secure the sale of IQ Winnersh on these terms, achieved through a competitive tender process and reflecting the attributes of the Park. The sale is very much in line with our ongoing focus on recycling capital out of assets at the appropriate time in the cycle in order to crystallise gains from higher value uses and redeploy funds into other profitable growth opportunities in our core markets."
1 Includes disposals completed during H1 2013 at an average exchange rate for the period of €1.17 / £1 and the Neckermann site disposal, also announced today, at an exchange rate of €1.16 / £1 as at 19 July 2013.
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For further information please contact:
SEGRO
Kate Heseltine (Investor Relations): +44 (0) 207 451 9042
Tulchan
David Shriver / Peter Hewer: +44 (0) 20 7353 4200
About SEGRO:
SEGRO is a leading owner, asset manager and developer of modern warehousing, light industrial and data centre properties, with £4.7 billion of assets (as at 31 December 2012, including our share of joint venture assets) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland, as well as suburban office buildings in the Thames Valley, Brussels and Milan.
The Group serves over 1,300 customers spread across a diverse range of industry sectors. It has 5.3 million sq m of built space and a passing rent roll of £318 million (as at 31 December 2012). For further information see www.SEGRO.com