Last checked at 20 Apr 2012 07:00
SEGRO announces phased disposal of IQ Farnborough for £90.1 million
SEGRO, the leading European owner-manager and developer of industrial property, has agreed the sale of IQ Farnborough, a mixed-use business park, for an expected consideration of £90.1 million.
IQ Farnborough is the first of SEGRO's six large non-strategic assets to have been sold since being highlighted as non-core at SEGRO's Investor Day in November 2011.
The disposal has been structured in two parts. The existing built assets and 18 acres of development land have been sold to a joint venture between funds advised by Harbert Management Corporation and XLB Property as Asset Manager for £79.7 million. Additionally, the sale of 11 acres of development land to two future owner-occupiers for £10.4 million has been agreed. These latter sales are principally conditional upon receipt of final planning approval and are expected to be finalised by the end of 2012.
IQ Farnborough currently provides a total lettable space of 411,000 sq ft. At 31 December, 2011, it had a vacancy rate of 13.1% by ERV and a weighted average unexpired lease term of 3.8 years to earliest break. The combined sale to Harbert/XLB and owner-occupiers reflects a net initial yield of 6.5%, or 7.0% with the benefit of lease incentives/rental guarantees. The total sale proceeds, net of lease incentives/rental guarantees, are approximately 0.8% below the 31 December, 2011 book value.
Commenting on the disposal, Phil Redding, SEGRO's Chief Investment Officer, said:
"The disposal of IQ Farnborough marks further progress with our strategic objectives, which includes the reshaping of our portfolio to ensure that we hold the highest quality assets in the strongest markets. Following our sale of five multi-let industrial estates in February, today's announcement takes disposal proceeds announced so far in 2012 to £170 million, with further disposals expected over the balance of the year."
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For further information please contact:
SEGRO
Kate Heseltine (Investor Relations Manager): +44 (0) 207 451 9042
Tulchan
John Sunnucks/David Shriver: +44 (0) 20 7353 4200
About SEGRO:
SEGRO is Europe's leading owner-manager and developer of industrial property. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange. SEGRO's portfolio comprises £5.1 billion of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. 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 £334 million (as at 31 December 2011). For further information see www.SEGRO.com