SEGRO announced that it has exchanged contracts with M&G Real Estate to dissolve The Heathrow Big Box Industrial and Distribution Fund (HBB) ahead of its termination date in June 2016.
HBB was formed as a 50/50 joint venture between Brixton PLC and M&G Real Estate in 2004 to own two assets in the vicinity of Heathrow Airport: Axis Park and Heathrow Corporate Park. SEGRO acquired the interest as part of its takeover of Brixton PLC in 2009.
Under the terms of the agreement, SEGRO will take full ownership of Axis Park which is valued at £144.9 mln (approx. €200 mln), while M&G Real Estate will take full ownership of Heathrow Corporate Park at a value of £118.7 mln (approx. €164 mln). In addition, SEGRO will sell HCH House in Poyle to M&G Real Estate for £15.0 mln (approx. €21 mln). All three assets will be sold at prices in line with December 2014 book values. The transaction is expected to complete before the end of June 2015.