SEGRO has exchanged contracts to sell a portfolio of UK big-box warehouses for €286.5m (£241m) to a fund advised by Morgan Stanley Real Estate Investing, acting through a controlled subsidiary in joint venture with Thor Equities Group. The transaction is expected to complete by the end of the year.
The portfolio comprises seven stand-alone big-box warehouses with a total floor space of 203,400m². The assets being sold are located in Warth Park, Raunds; DIRFT, Daventry; Rye Park, Hoddesdon; Hams Hall, Coleshill; Grove Park, Leicester; The Duke, Burton-on-Trent and Magna Park, Lutterworth. The combined vacancy rate is 18.5% and unexpired lease term to the earlier of break or expiry is 6 years. The current passing rent of the portfolio is €12m (£10.1m).
Phil Redding, Chief Investment Officer of SEGRO, said: “The sale of these assets marks the end of a successful period of ownership by SEGRO, generating a blended ungeared IRR since the acquisition of approximately 11%. The proceeds will be recycled into our existing and future development programme, including UK big-box logistics parks developed using the Roxhill platform which we acquired last year.”