SEGRO has acquired a portfolio of offices on the Bath Road, Slough, from clients of AEW for €502.5m (£425m). The portfolio represents 89,000m² of built space spread across 39 acres of land with a passing rent of €23.6m (£20m), reflecting a net initial yield of 4.6%. The ageing nature and relatively short lease terms of some of the offices mean that this acquisition will enhance SEGRO’s ability to satisfy growing customer demand for data centres, creative industries, life science occupiers and other potential users of industrial space in Slough.
David Sleath, SEGRO’s Chief Executive, said: “Over recent years we have seen a transformation in the nature and level of occupier demand for industrial, data centre and other uses of space in Slough. Since 2016, we have created over 96,000m² of new industrial space on the Slough Trading Estate to meet this demand, of which 58,000m² has been provided to support our growing data centre customers. Developing the highest and best use of industrial land in Slough has been core to our purpose as a business since 1920 and we look forward to continuing to do so following the re-acquisition of the office portfolio, allowing SEGRO to further invest and attract new businesses into the local area.”