SEGRO completes sale of £111 million of UK regional assets (UK)

SEGRO, Europe's leading owner-manager and developer of industrial property, is pleased to announce that it has completed the sale of a portfolio of 10 non-core UK regional industrial estates for £111 million (approx. €140 million) to a large institutional UK fund.

The portfolio being disposed of comprises 10 predominantly older, secondary, multi-let industrial estates located in Portsmouth, Bristol, Yate, South Feltham, Sunbury, Crawley and Bishops Stortford.

The estates comprise approximately 160,000 m² of lettable space. At June 30, 2012, the portfolio had a vacancy rate of 11.2% by ERV and a weighted average unexpired lease term of 3.2 years to earliest break.

The sale price represents a net initial yield of 8.4%, or 8.9% with the benefit of lease incentive top-ups. The sale proceeds, net of lease incentive top-ups, are approximately 3% above the June 30, 2012 book value.

Including this transaction, SEGRO has announced or completed disposals of £503 million (approx. €636 million) in the year to date, at the top end of our £300-500 million guidance range for non-core disposals during 2012.

Commenting on the disposal Phil Redding, SEGRO's Chief Investment Officer, said: "This portfolio sale marks another important step forward in the delivery of our strategy and means that we have now completed a significant part of our non-core asset disposals in the UK. This positions us well to focus on non-core disposals in Continental Europe."

Source: Segro

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