SEGRO, acting as venture adviser to the SEGRO European Logistics Partnership (SELP) joint venture, has sold four big box warehouses and adjacent development land in Belgium owned by SELP. SELP has received net proceeds of €83.4m (SEGRO owns 50% of SELP: its share of the proceeds is €41.7m), equating to a net initial yield to SEGRO on the land and assets of 4.7% (topped-up net initial yield of 5.6% including a one-year rent guarantee on the unoccupied space).
The warehouses total 92,500m² of which 82% is occupied by ERV, with a weighted average unexpired lease length of 6.5 years to break and 7.1 years to expiry as at 30 September 2018. This disposal successfully concludes SEGRO and SELP’s presence in Belgium, at a modest premium to book value, in line with SEGRO’s strategy to exit markets where it does not have or does not expect to achieve, a scale position. SEGRO and SELP were advised by Knight Frank.
