Last checked at 20 Feb 2012 07:00
20th February 2012
SEGRO sells five non-core industrial estates for £80 million to two funds managed by
Ignis Asset Management
SEGRO, the leading European owner-manager and developer of industrial property, announces that it has sold1 a portfolio of five non-core UK industrial estates to two property funds managed by Ignis Asset Management for £80.2 million.
SEGRO outlined a new strategy in November 2011, which includes an intention to focus its UK multi-let industrial portfolio on London and the South East, and this disposal marks a positive step forward in the execution of these plans.
The portfolio comprises five multi-let industrial estates, providing a total lettable space of 74,734 sq m. The portfolio is currently fully let and has a weighted average unexpired lease term of 6.75 years to earliest expiry. The sale price represents a net initial yield of 6.3 per cent, or 7.0 per cent including the benefit of rent top-ups and guarantees.
The five estates that make up the portfolio are:
§ Trilogy, Fareham
§ Southern Cross Distribution Park, Southampton
§ Emersons Green, Bristol
§ Gatwick Gate, Crawley
§ Motor Park, Portsmouth
Commenting Phil Redding, SEGRO's Chief Investment Officer, said:
"We continue to make good progress on our strategic objectives, which includes the reshaping of our portfolio to ensure that we hold the highest quality assets in the strongest markets. With this disposal, our plans have taken a further, positive step forward following the recently-completed acquisition of the prime UKLF logistics warehouse units.
"The sale of these assets demonstrates that, despite the uncertain economic environment, investor demand for industrial assets remains resilient."
1 Ignis's UK Commercial Property Trust has completed the acquisition of the estates at Bristol, Crawley and Portsmouth. Ignis's UK Property Fund has acquired the estates at Southampton and conditionally exchanged on the acquisition of Fareham, with completion expected shortly.
For further information please contact:
SEGRO | +44 (0) 207 451 9043 | Paul Barker (Interim Head of Investor Relations) |
+44 (0) 207 451 9042 | Kate Heseltine (Investor Relations Manager) | |
Tulchan | +44 (0) 20 7353 4200 | John Sunnucks/David Shriver |
About SEGRO: SEGRO is the leading European 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 £5.4 billion of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. SEGRO currently has £930 million of logistic assets under management in the UK, Germany, France, Benelux, Poland and the Czech Republic. 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 £340 million (Figures all as at 30 June 2011). For further information see www.SEGRO.com