Last checked at 27 Apr 2012 14:23
27 April 2012
Statement re: Neckermann
In its Interim Management Statement yesterday (26 April 2012), SEGRO announced that a major Continental European customer was seeking to negotiate a significant restructuring of its lease. SEGRO is now able to advise that the customer in question is the Frankfurt-based mail-order company neckermann.de GmbH ('Neckermann').
Neckermann, which is owned by an affiliate of Sun Capital Partners, Inc., has this afternoon released a statement stating its intention to secure the future of its business by focusing on its e-commerce offering. As a consequence, Neckermann's property requirements will be significantly reduced.
An important part of this process will be the discussions with employees and suppliers (including SEGRO) that are now underway, particularly as regards the impact of Neckermann's plans to phase out its catalogue and clothing business.
The main SEGRO-owned site occupied by Neckermann is a largely bespoke 291,000 sq m facility whose principal use is order fulfillment of catalogue related demand.
This SEGRO-owned asset, which extends to 309,000 sq m in total, was valued at £86 million at 31 December 2011 and generated approximately £12 million of Neckermann related rental income in 2011.
Rent due by Neckermann has been paid up to the end of April 2012 and SEGRO holds bank guarantees which should cover amounts due for the bulk of the remainder of 2012 in the event of non-payment by Neckermann.
The Neckermann site in Frankfurt is one of the six large non-strategic assets that were highlighted as non-core at SEGRO's investor day in November 2011.
SEGRO will update the market further when appropriate.
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For further information please contact:
SEGRO
Justin Read (Group Finance Director): +44 (0) 207 451 9110
Kate Heseltine (Investor Relations Manager): +44 (0) 207 451 9042
Tulchan
John Sunnucks/David Shriver: +44 (0) 20 7353 4200
About SEGRO:
SEGRO is Europe's leading 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 £5.1 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 £334 million (as at 31 December 2011). For further information see www.SEGRO.com