SEGRO plc (‘SEGRO’or ‘the Company’) has acquired a portfolio of three, fully-let logistics buildings in the Netherlands, totaling 105,000m² of space, for €92.7m from the private Dutch developer, Dok Vast. The price equates to a net initial yield of 6.1% for a combined weighted average lease term of five years first to break.
Two of the buildings are less than three years old and are let to Nokia Solutions and Networks OY and to Tesla Motors Netherlands BV, with a combined total of 95,400m². They are located in Tilburg which is where the logistics market is largely concentrated in the Netherlands. As reported in Europe Real Estate 2015, the largest transactions in 2014 took place in Kuehne+Nagel in Tiel (56,000m²), Telsa (43,000m²) and Coolblue (25,000m²). The remaining building, which comprises 8,600m², is located in ‘s-Hertogenbosch, an established industrial and logistics location.
Phil Redding, SEGRO’s chief investment officer, said: “The off-market acquisition of these properties is in line with our strategy to build scale in modern, big box warehouses in core logistics locations in the UK and Continental Europe. Tilburg is a prime logistics market with a shortage of quality supply, low vacancy and strong occupier demand, and should benefit further from future expansion of the port.”
