SEGRO plc and Schroders have completed a property swap transaction in which SEGRO has acquired from Schroders a 256,000ft² urban warehouse estate in West London for €163.5m (£140m) and Schroders has acquired from SEGRO a portfolio of UK big box and urban assets totalling 880,000ft² for €239.4m (£205m). The balance of circa €75.9m (£65m) has been paid by Schroders to SEGRO.
SEGRO has acquired Matrix Park, a fully let urban warehouse estate in Park Royal, West London, close to existing SEGRO assets and the A40. The estate also includes a 1.4-acre development site. Based on current passing rent and lease reviews and renewals under discussion the estate generates a passing rent of €4.8m (£4.1m) and has an average WAULT of 5 years.
The portfolio acquired by Schroders consists of two stand-alone, fully let big box assets in Hams Hall, Birmingham and Brackmills, Northampton as well as four urban assets including multi-level warehouse X2 close to Heathrow Airport, Oakwood in Park Royal, Advent Way in North London and a cross-dock warehouse in Radlett. Based on current passing rent and lease reviews and renewals under discussion the portfolio generates a passing rent of €8.7m (£7.5m) and has an average WAULT of 6 years.
David Proctor, Managing Director of Group Investment at SEGRO, commented: “This off-market transaction has allowed us to acquire a significant multi-let industrial estate in one of our core markets, offering strong rental growth potential as well as a medium to long term redevelopment opportunity. At the same time, we have been able to divest a number of relatively small holdings, all of which were earmarked for disposal in the near to medium term.”
