SEGRO plc ('SEGRO') announces that the SEGRO European Logistics Partnership ('SELP') joint venture, in which SEGRO has a 50% interest, has acquired a 51,300 m² prime logistics facility in Marseille for €35.0 million. The vendor has requested to remain confidential.
The building is split into two units. The first is a 39,300 m² warehouse which was completed in May 2014 and has been let on a 12 year lease without break options to Samada, the logistics provider and subsidiary of French grocery retailer Monoprix, part of Groupe Casino.
The second unit is a 12,000 m² adjoining warehouse which was completed in December 2014, having been developed speculatively, and is currently under offer to a prospective customer.
The net initial yield on the acquisition is 7.4%, including a one year rental guarantee on the speculatively developed unit.
The Marseille region is a key node on the Lille-Paris-Lyon-Marseille central logistics spine in France and the asset will be SELP's second in the area.
Commenting on the acquisition, SEGRO's Chief Investment Officer, Phil Redding, said: "The acquisition of this facility in Marseille, one of France's prime logistics markets, is an example of our ability to execute off-market acquisitions which enhance the quality and longevity of our income stream.
"The transaction is in line with SEGRO's strategic objective to grow the SELP portfolio in its key target markets in Western and Central Europe. Since its creation in October 2013, SELP has acquired approximately €550 million in assets and development land and this acquisition represents another step towards creating a leading Continental European logistics platform."