Last checked at 26 Sep 2013 07:00
26 September 2013
SEGRO completes the sale of West Cross Industrial Park for £75 million
SEGRO is pleased to announce that it has completed the sale of West Cross Industrial Park for £75.0 million in cash to Legal & General Property.
Largely constructed in the 1980's, West Cross Industrial Park is a 46,000 sq m mixed use park in Brentford, West London, comprising of industrial assets (64 per cent by value), offices, a retail warehouse and leisure facilities. There are 28 customers on the Park, including BSkyB, DSG Retail Limited (trading as PC World), NTL and Marsh Wall (trading as Berry BMW).
As at 30 June 2013, the Park had a vacancy rate of 7.4 per cent and a weighted average unexpired lease term to break of 5.2 years.
The sale price represents a net initial yield of 5.4 per cent, or 6.8 per cent including the benefit of top-ups in relation to lease incentives. The net sale proceeds, after the deduction of top-ups, are 10.2 per cent above the 30 June 2013 book value and 5.4 per cent above the 31 December 2012 value.
Commenting, Phil Redding, SEGRO's Chief Investment Officer, said:
"We are pleased to have made further progress with our strategic portfolio reshaping programme. This disposal is consistent with our strategy of focusing our portfolio on more modern and generic warehouse properties in our key markets.
We have now announced or completed approximately £545 million of disposals since the start of the year, slightly ahead of the £300-£500 million target we initially set ourselves. As stated at the time of our half year results announcement in July, with occupier and investment market conditions generally expected to improve and with our pro-forma LTV much reduced, we are flexing the pace of disposals to reflect both value and the availability of reinvestment opportunities across the portfolio."
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For further information please contact:
SEGRO
Justin Read (Group Finance Director): +44 (0) 207 451 9110
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 (including joint ventures at Group share, as at 30 June 2013) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland. We also own offices and more specialised buildings in the Thames Valley, Brussels and Milan and smaller industrial property investments in Belgium, The Netherlands and the Czech Republic.
The Group serves over 1,400 customers spread across a diverse range of industry sectors. It has 5.2 million sq m of built space and a passing rent roll of £311 million (as at 30 June 2013). For further information see www.SEGRO.com