SEGRO plc (‘SEGRO’) has sold a portfolio of big box warehouses and development land in Italy, the Czech Republic and Poland to the SEGRO European Logistics Partnership (‘SELP’) joint venture for €89.4m.
The portfolio contains four fully-let, modern big box warehouses containing 133,000m² of space, three of which are located in Italy (two assets in Bologna, let to global logistics operators Geodis and One Express respectively, and one in Milan let to retailer Leroy Merlin) and were acquired as part of the Vailog transaction in 2015. The fourth asset is located within the SEGRO Logistics Park in Prague and is let to the Danish pharmaceutical company, Orifarm group. The weighted average lease length of the tenancies is 11 years. The sale price of the built assets is €81.2m and reflects a topped-up initial yield of 6.3% (net initial yield of 2.3%), in line with book values at 31 December 2015.
The portfolio also contains 18.1 hectares of land capable of supporting approximately 66,000m² of big box warehouse development in Prague and Tychy (Poland).
In addition, SEGRO has exchanged contracts to sell a 4.7ha development site near Schiphol Airport, in Amsterdam, to SELP. Completion is expected early in the second half of 2016.
The transaction is consistent with SEGRO’s strategy of holding Continental European big box warehouses and development land primarily within the SELP joint venture, in which SEGRO has a 50% interest and acts as asset, property and development manager.
