SEGRO plc (‘SEGRO’) announces that SEGRO European Logistics Partnership (‘SELP’) has acquired a portfolio of three modern, fully-let logistics assets in France, the Czech Republic and Germany from Standard Life Investments European Property Growth Fund for €42.9 million. The purchase price represents a net initial yield of 8.4%.
The portfolio, which was built between 2000 and 2006, is fully let with a weighted average lease length to the earlier of break or expiry of 1.9 years and generates €3.9 million of passing rent.
SEGRO holds a 50% share of SELP and acts as asset, property and development manager for the joint venture.
The 68,800 m² portfolio comprises three logistics assets in France, the Czech Republic and Germany: France: The asset in France comprises 25,800 m² of logistics space, let to ID Logistics, a leading third party logistics provider, and is located in Dugny a northeast suburb of Paris close to Le Bourget airport and Garonor where SEGRO already operates.
Czech Republic: The Czech Republic asset comprises two warehouses totalling 21,800 m², let to three tenants (OTEC, UTi and Schachermayer), all of whom use their premises for logistics purposes.
Germany: The 21,200 m² warehouse in the Dusseldorf region was originally built by SEGRO and completed in 2005, and is currently occupied by ASICS, the international sportswear manufacturer. The asset will be vacated in 2015 when the occupier moves into a 74,000 m² warehouse currently under construction by SEGRO in nearby Krefeld.
Commenting on the acquisition, SEGRO’s Chief Investment Officer, Phil Redding, said, “This transaction is a good example of our ability to source attractive off-market deals in markets we know well. Together with the €472 million of logistics acquisitions within SELP already completed this year, it also demonstrates our ability to act as a consolidator of the fragmented Continental European logistics market.”