SEGRO plc announced that it has acquired the 50% interest in its Logistics Property Partnership joint venture previously owned by Moorfield Real Estate Fund II for £95.6 million (approx. €120.7 million).
LPP was established in 2012 by SEGRO and MREF II to acquire the UK Logistics Fund and was jointly managed by SEGRO and Moorfield.
The Portfolio comprises 12 high quality logistics warehouses totalling 377,000 m², predominantly located in the South East and Midlands, and occupiers include major retailers and logistics providers including Sainsbury's, Tesco, Booker, Royal Mail and DHL.
The acquisition is aligned with SEGRO's strategy of expanding its presence in its target logistics markets and of reducing the number of smaller joint ventures in the Group.
Commenting on the acquisition, SEGRO's Chief Executive Officer, David Sleath, said: "This transaction provides us with a rare opportunity to acquire, off-market, a portfolio of high quality UK logistics assets with a strong customer line-up. We know the assets well, having successfully executed a number of asset management initiatives within the joint venture, including letting up all the space which was vacant at the time of acquisition. With occupier demand for logistics in the UK improving and supply conditions remaining tight, there are opportunities to realise further value from this attractive portfolio."