SEGRO plc has exchanged contracts to sell the Heston & Airlinks Industrial Estate (“Heston Industrial Estate”) near Heathrow Airport to Capital Industrial Four BV for €93.1 million (£79.5 million).
Heston Industrial Estate is a multi-let industrial estate, located to the north-east of Heathrow Airport close to junction 3 of the M4 motorway, comprising 44,686m² (481,000ft²) of warehouse space across 47 units. The estate has a vacancy rate of around 1% and a weighted average lease length to break of 5.4 years.
The disposal price reflects a topped-up net initial yield of 5.1% and a small premium to the book value at 30 June 2016. Completion is expected by the end of September.
Phil Redding, Chief Investment Officer at SEGRO, said: “This disposal reflects both our desire to focus our portfolio on more modern and less management-intensive assets, as well as the continuing, strong investor demand for multi-let warehouse assets in London. We intend to use the proceeds to help fund the development of new warehousing in our core markets.”
