Last checked at 29 Sep 2011 07:00
SEGRO announces the sale of a portfolio of six industrial estates in Greater London to Legal & General Property for £38.2 million
SEGRO, Europe's leading industrial REIT, announces that it has agreed the sale of a portfolio of six industrial estates in Greater London to the Industrial Property Investment Fund (IPIF) managed by Legal & General Property for £38.2 million.
The portfolio comprises six multi-let freehold industrial estates at various locations across London, providing a total lettable space of 43,114 sq m. The portfolio currently has a vacancy rate of 15.4% by ERV and a weighted average unexpired lease term of 2.7 years to earliest expiry. The sale price represents a net initial yield of 6.2% or 8.5% including the benefit of rent top ups and guarantees.
The six estates that make up the portfolio are:
* Abbeydale Road, Park Royal * Bush Industrial Estate, Park Royal * Brent Crescent, Park Royal * David Road and Willow Road, Poyle * Crusader Industrial Estate, Haringey * Blackwall Trading Estate, Poplar
To date in 2011, SEGRO has disposed of £89 million of assets (including SEGRO's share of joint venture disposals).
David Sleath, SEGRO's Chief Executive, said,
"This disposal is part of our strategy to concentrate on larger holdings and higher quality assets in our core markets. The sale demonstrates that despite uncertain economic conditions, there is still good demand from investors for industrial properties."
Jonathan Holland, Senior Fund Manager at Legal & General Property, said,
"This transaction provides the IPIF with the opportunity to acquire a portfolio of management intensive London assets, which we believe offer added value opportunities over the long term. Industrial property in London has seen a stronger recovery than the rest of the UK and, whilst occupier demand across the UK looks set to continue to be weak, London, boosted by international trade and tourism as well as an improving finance and business sector, should support downstream demand for smaller industrial occupiers. As a result of this transaction, the Fund's London weighting increases from 29.7% to 32.3%."
Dohertybaines advised SEGRO on the disposal and Jones Lang LaSalle advised Legal & General Property.
For further information please contact:
SEGRO +44 (0)20 7451 9043 Alex Shorland-Ball Tulchan Communications +44 (0)20 7353 4200 John Sunnucks/ David Shriver
About SEGRO:
SEGRO is Europe's leading developer and owner of industrial space. 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. 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 (as at 30 June 2011). For further information see www.SEGRO.com
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