SEGRO and Picton complete UK property swap

24 March 2014

SEGRO and Picton complete UK property swap

SEGRO plc ('SEGRO') and Picton Property Income Limited ('Picton') have completed a property swap transaction through which SEGRO has acquired from Picton a 38,150 sq m single-let, modern distribution warehouse at Magna Park, Lutterworth for £34.0 million. Picton has purchased from SEGRO a 32,810 sq m modern multi-let industrial estate at Parkbury, Radlett for £40.5 million. The remaining balance of £6.5 million has been paid by Picton to SEGRO in cash.

The warehouse acquired by SEGRO was completely rebuilt in 2006 and is leased to Primark until October 2026, with a break option in 2016. The net initial yield on the acquired asset is 8.1 per cent, which reflects the potentially short term nature of the income. The net initial yield on the disposal is 6.3 per cent.

SEGRO has acquired this prime, modern building on one of the best distribution parks in the UK. Magna Park, situated within the 'golden triangle', is an extremely attractive location for both logistics operators and retailers as it provides them with quick and easy access to Britain's network of motorways including the M1, M69, M6, M40 and M5. Occupiers at Magna Park include Asda Walmart, Britvic, DHL, Eddie Stobart, Geodis and Wincanton, many of which are also customers of SEGRO.

Picton has acquired Parkbury in Radlett, which is adjacent to the M25 and comprises 24 multi-let units totalling 32,810 sq m which were constructed by SEGRO between 2003 and 2009.

Phil Redding, SEGRO's Chief Investment Officer, said: "This is another innovative, off-market property transaction that demonstrates how SEGRO is continuing to reshape its portfolio. This acquisition is in line with our strategy to increase our presence in the UK logistics market by acquiring modern, single-let distribution warehouses in prime locations along major transportation hubs and distribution corridors."

ENDS

Contact:

Harry Stokes, Head of Investor Relations and Research Tel: +44 (0)20 7451 9124

Stephanie Highett / Nick Taylor, FTI Consulting Tel: +44 (0) 20 3727 1000

About SEGRO: 

SEGRO is a leading owner, asset manager and developer of modern warehousing and light industrial properties, with £4.1 billion of assets (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. We also develop and own warehouses in important distribution markets in the UK, Belgium, the Netherlands and the Czech Republic, and offices in Slough, Brussels and Milan. The Group serves around 1,250 customers spread across a diverse range of industry sectors. It has 5.3 million square metres of built space under management and a gross passing rent roll of £258 million (SEGRO share). For further information see www.SEGRO.com