SEGRO announced that it has bought out KBC Real Estate’s 50% stake in its Belgian logistics property joint venture for a total consideration of €33.2 million (approx. £28.1 million).
SEGRO’s joint venture with KBC consisted of two logistics assets totalling 92,000 m² of built space; one at Bornem for 30,000 m² where the occupiers are DHL and two distributors of medical supplies, Alcon and Pharma Distri Center, and the other at Rumst where 62,000 m² is occupied by Cummins.
This buy-out follows SEGRO’s announcement on 28 June 2013 that it is forming a €1 billion logistics property joint venture in Continental Europe to be known as SEGRO European Logistics Partnership. As indicated at the time of that announcement, the disclosed proforma financial effects of the SELP transaction included the completion of the buy-out of the Belgian joint venture and injection of these assets into the SELP vehicle.
The Belgian joint venture assets include contiguous land banks totaling 81,000 m². Given their attractive locations within the logistics ‘Golden Triangle’ of Brussels, Antwerp and Gent, there is good potential for further logistics development on this land, which is in line with the strategic objectives to grow the SELP portfolio over time through both development and acquisitions.
The buildings and land being injected into the SELP portfolio were purchased by SEGRO at a net initial yield of 7.7%.
The transaction also includes the purchase of KBC’s 50% stake in two small land holdings at Zaventum and Kortenberg, which will not be injected into the SELP vehicle. SEGRO will actively seek to dispose of this land and has already exchanged contracts to sell over a third of it.
Phil Redding, SEGRO’s Chief Investment Officer, said: “The buy-out of our joint venture partner in Belgium is an important step in the process of placing our core Continental European logistics assets into a larger logistics platform. By acquiring KBC’s interests in these developments, we are reducing the number of joint venture partners in Continental Europe and maximizing the potential benefits of creating scale in logistics. These are attractive logistics assets situated in a prime location and they will be a strong addition to SELP.”
Source: SEGRO
