SEGRO acquires UK logistics warehouse for £30m

16 September 2013

SEGRO acquires prime UK logistics warehouse from Gemini (Propinvest) portfolio

for £30 million

SEGRO is pleased to announce that it has completed the acquisition of a modern and well located logistics warehouse, from the Gemini (Propinvest) portfolio, for £30 million. The purchase price represents a net initial yield of 6.9 per cent.

The 25,500 sq m logistics warehouse was developed in 2004 and is located in Barking, East London, close to the A13 and A406, providing fast access to central London, the M25 and the national motorway network. The asset is fully let to London City Bond Limited, a leading bonded warehousing and distribution company servicing the wines and spirits industry, until 2028.

SEGRO views East London as an area with strong potential for expansion given the on-going regeneration of the area and limited supply of good quality logistics warehousing.

Since December 2012, the property has been managed by Valad Europe, who were appointed by Deloitte LLP, the fixed charge receivers, to asset manage 25 of the assets within the Gemini (Propinvest) portfolio.

Commenting, Phil Redding, SEGRO's Chief Investment Officer, commented: "This is an excellent opportunity to acquire a modern and well specified warehouse in a key location close to central London, where the supply of this type of product is limited, and with good national transport links. The purchase fits with our strategic objective of expanding our big box logistics platform in major transportation hubs and corridors, both in the UK and via our new joint venture, SEGRO European Logistics Partnership ("SELP"), in Continental Europe."

Rob Howe, Valad Europe's Head of UK Real Estate, commented: "Since taking over management of 25 of the Gemini assets last December, our remit has been to improve income and capital values where possible to maximise recoveries. The sale of this asset forms part of that strategy and is in line with our business plan for the portfolio as agreed with the Receivers and the Special Servicer."

- ENDS -

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

Valad Europe

Louise Bathersby: +44 (0) 20 7659 6710

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

About Valad Europe:

Valad Europe is a leading independent diversified real estate investment manager with a network of local offices throughout Europe, managing €4.3 billion across 16 mandates.

Valad Europe manages 620 assets comprising approximately 6.1 million square metres. Its core business is value-adding real estate investment management with local asset management teams taking care of 5,500 tenant customers.

Valad has 245 people in 22 offices in 12 countries across Europe.

Valad is a privately owned independent company, owned by management with Blackstone as an investor.

www.valad.eu