SEGRO plc acquired three fully leased, highly reversionary logistics warehouses in The Netherlands for a total cash consideration of €222m.
Undertaken via three separate transactions, the assets are all in attractive locations and help to build on SEGRO’s scale in a region which acts as a key logistics hub for Continental Europe, as well as the Dutch domestic market.
They include a 98,000m2 modern logistics estate in Eindhoven, which was acquired from Nuveen. It was built in 2020 and is rated BREEAM In-Use ‘Good’. It consists of three units, currently fully leased to GXO and Rhenus; a 37,800m2 newly-built logistics warehouse in Heerlen in the De Beitel industrial estate acquired from VolkerWessels & Vestum and rated BREEAM ‘Excellent’. It is currently leased to B&R Premium Logistics B.V., a third-party logistics company specialising in the soft drinks industry; a 36,500m2 logistics warehouse in the Vossenberg industrial estate, Tilburg, which acquired from abrdn, built in 2018 and is rated BREEAM ‘Very Good’.
The assets currently generate approximately €10m of headline rent, which will almost double the headline rent attributed to SEGRO’s portfolio (at share) in The Netherlands. They also offer a significant amount of reversionary potential, the majority of which is expected to be realised over the next four years, as well as the potential to increase rental values through improvements in the sustainability features of the Tilburg and Eindhoven assets, in line with the Responsible SEGRO commitment to Champion low-carbon growth.
Eelco Ouwerkerk, Head of the Netherlands at SEGRO, said: “These warehouses are in some of the most attractive and supply-constrained industrial and logistics markets in The Netherlands. The acquisitions are a very positive step forward in the delivery of our plan to build scale in this important region, adding three high quality assets with reversionary potential and significantly increasing the size of our Dutch portfolio.”
Marco Simonetti, Managing Director, Continental Europe at SEGRO, said: “We have been able to leverage our market-leading operating platform and strong local networks to create these opportunities and profitably deploy some of the capital raised in our recent equity placing, at a time when investment markets show signs of stabilisation and the supply of new sustainable warehousing remains constrained.”
Image provided by FTI Consulting.
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