Last checked at 15 Dec 2014 07:00
15 December 2014
SEGRO SELLS £113.8 MILLION PORTFOLIO OF UK INDUSTRIAL ESTATES
SEGRO plc ('SEGRO') announces the disposal of a portfolio of six UK industrial estates to Orchard Street Investment Management for £113.8 million.
The portfolio generates a passing rent of £6.4 million, rising to £7.4 million on expiry of rent-free periods and allowing for rent guarantees. The price reflects a premium in excess of 10 per cent compared to book value at 30 June 2014.
The portfolio comprises six multi-let industrial estates1 located around the M25 and M3 motorways with a combined floor-space of 94,493 sq m, spread across 97 units. The portfolio's vacancy rate is approximately 9 per cent.
Phil Redding, SEGRO's Chief Investment Officer, said:
"This disposal marks another important milestone as we continue to reshape our portfolio, leaving the UK non-core asset disposal programme virtually complete. The proceeds of this transaction will be used to reduce our net debt in the short term and will help fund our accretive UK and Continental European development pipeline which should generate a fully-let yield on development cost of over 9 per cent."
1 The six estates are in Camberley, Frimley, West Thurrock, Hounslow, Woodford Green and Hemel Hempstead.
ENDS
For further information, please contact:
SEGRO plc
Harry Stokes (Head of Investor Relations and Research)
+44 (0) 20 7451 9124 / harry.stokes@segro.com
Lizzie Humphreys (External Communications Manager)
+44 (0) 20 7451 9129 / lizzie.humphreys@segro.com
FTI Consulting
Richard Sunderland / Nick Taylor / Claire Turvey
+44 (0) 20 3727 1000
About SEGRO:
SEGRO is a leading owner, asset manager and developer of modern warehousing and light industrial properties, with £4.5 billion of assets (at 30 June 2014, including joint ventures at share) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland. It also develops and owns warehouses in important distribution markets in the UK, Belgium, the Netherlands and the Czech Republic, and offices in Slough and Milan. The Group serves around 1,250 customers spread across a diverse range of industry sectors. It has 5.8 million square metres of built space under management and a gross passing rent roll of £266 million (SEGRO share).
For further information see www.SEGRO.com/investors.