SEGRO sells €195.8 mln portfolio of UK logistics assets (UK)

SEGRO plc announces that it has sold a UK portfolio of six logistics properties and a smaller regional warehouse to Logicor, Blackstone’s European logistics platform, for £153.3 mln (approx.€195.8 mln).
The sale proceeds are 3% ahead of the most recently reported acquisition / book values at 30 June 2014.
The portfolio is fully let and generates annualised net rent of £9.3 mln (approx.€11.9 mln) which will rise to £11.2 mln (approx.€14.3 mln) once rent-free periods and fixed uplifts over the next five years are taken into account.
The 185,331 m² portfolio comprises logistics warehouses formerly part of the Logistics Property Partnership joint venture located in Bardon, Bicester, Maidstone, Sheffield, and Swindon (two warehouses), and a smaller warehouse in Norfolk purchased by SEGRO as part of a portfolio transaction in July 2014. After the transaction, SEGRO will continue to own £481 mln (approx.€614.6 mln) of UK big box logistics assets (SEGRO’s share, based on values at 30 June 2014, adjusted for acquisitions and disposals since the interim results). The proceeds will be used to reduce Group net debt.
Commenting on the disposal, Phil Redding, SEGRO’s Chief Investment Officer, said: “This disposal enables us to strengthen further our long-term focus on the major logistics hubs and corridors in the UK and Continental Europe which we believe offer the optimal potential to deliver ongoing value and growth for our shareholders.”
Source: SEGRO