SEGRO plc (SEGRO or the Group) and UK Commercial Property Trust Limited (UKCPT), which is advised by Standard Life Investments, have completed a property swap transaction through which SEGRO has acquired from UKCPT a 27,800 m² single-let, modern distribution warehouse in Brackmills, Northampton, for €42.6 mln (£31 mln). UKCPT has purchased from SEGRO a 54,800 m² multi-let industrial estate at Ventura Park, Radlett for €92.3 mln (£67.1 mln). The balance of €49.6 mln (£36.1 mln) has been paid by UKCPT to SEGRO in cash.
The property acquired by SEGRO is on the Brackmills Industrial Estate which is situated in a prime distribution location in the Midlands, approx. 4 km from the M1 motorway. The building is a high specification, cross-docked distribution warehouse, built in 1997 and extensively refurbished in 2007. The warehouse is leased to Asda Stores until 2028 with a tenant option to extend the lease for a further five years and is used for the distribution of the George clothing range. The net initial yield on acquisition is 4.7 % and the rental income of the asset is currently reversionary.
UKCPT has acquired Ventura Park in Radlett, which is adjacent to the M25 and comprises 15 multi-let units, fully occupied, totalling 54,800 m². The topped up net initial yield is 6%, representing a small premium to the book value at 30 June 2015.
Source: SEGRO
