Last checked at 15 Jun 2016 07:00
15 June 2016
SEGRO TRANSFERS PORTFOLIO OF MODERN BIG BOX WAREHOUSES AND DEVELOPMENT LAND INTO SELP JOINT VENTURE
SEGRO plc ('SEGRO') has sold a portfolio of big box warehouses and development land in Italy, the Czech Republic and Poland to the SEGRO European Logistics Partnership ('SELP') joint venture for €89.4 million (£71.0 million).
The portfolio contains four fully-let, modern big box warehouses containing 133,000 sq m of space, three of which are located in Italy (two assets in Bologna, let to global logistics operators Geodis and One Express respectively, and one in Milan let to retailer Leroy Merlin) and were acquired as part of the Vailog transaction in 2015. The fourth asset is located within the SEGRO Logistics Park in Prague and is let to the Danish pharmaceutical company, Orifarm group. The weighted average lease length of the tenancies is 11 years. The sale price of the built assets is €81.2 million and reflects a topped-up initial yield of 6.3 per cent (net initial yield of 2.3 per cent), in line with book values at 31 December 2015.
The portfolio also contains 18.1 hectares of land capable of supporting approximately 66,000 sq m of big box warehouse development in Prague and Tychy (Poland).
In addition, SEGRO has exchanged contracts to sell a 4.7 hectare development site near Schiphol Airport, in Amsterdam, to SELP. Completion is expected early in the second half of 2016.
The transaction is consistent with SEGRO's strategy of holding Continental European big box warehouses and development land primarily within the SELP joint venture, in which SEGRO has a 50 per cent interest and acts as asset, property and development manager.
Exchange rate as at 14 June 2016 is €1.26 to £1.
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 / Claire Turvey
Tel: +44 (0) 20 3727 1000
About SEGRO and SEGRO European Logistics Partnership ('SELP'):
SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages over six million square metres of space valued at approximately £7 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries. See www.SEGRO.com for further information.
SEGRO European Logistics Partnership ('SELP') is a joint venture in which SEGRO owns a 50 per cent interest. It was established in October 2013 and owns over €2 billion of big box warehouses and development land across eight Continental European countries. SEGRO acts as asset, property and development manager for SELP.
For further information see www.SEGRO.com.