SEGRO plc has exchanged contracts to dispose of Energy Park, the recently completed office campus near Milan, to Hines Italia SGR for €118.7 million (£85.4 million). The sale price represents a 5% premium to book value at 31 December 2014 and a net initial yield of 7.3%. The transaction is expected to complete in the second quarter of 2015.
Energy Park is a fully-let, 61,400 m² suburban office park built by SEGRO and completed in mid-2014, which generates an annualised net rent of €8.8 million (£6.3 million) from Alcatel Lucent and a range of other international blue chip tenants including DNV, SAP, Nobel Biocare and Stanley Black & Decker.
The campus is located approximately 20 kilometers from the center of Milan and comprises the office park and associated amenities, including a canteen, kindergarten and multi-storey car park.
An adjacent eight hectare plot of land, containing redundant premises formerly occupied by Alcatel Lucent, will be retained by SEGRO.
Phil Redding, SEGRO's Chief Investment Officer, said:“Energy Park is the last of the six, large non-strategic assets identified for disposal in November 2011. The portfolio re-shaping programme was a vital element of the SEGRO strategy to improve the quality of its asset base by focusing on modern warehousing and light industrial property.”