SEGRO PLC BIG BOX WAREHOUSE ACQUIRED IN SWAP TRANSACTION (1623V)
01 November 2017 - 6:00PM
UK Regulatory
TIDMSGRO
RNS Number : 1623V
SEGRO PLC
01 November 2017
1 November 2017
SEGRO ACQUIRES PRIME MIDLANDS BIG BOX WAREHOUSE
IN ASSET SWAP TRANSACTION
SEGRO plc ("SEGRO" or "the Company") has acquired a fully let
390,000 sq ft big box warehouse in the Midlands region of the UK
from LGIM Real Assets ("Legal & General"), in exchange for
Kingsland Business Park, which is a multi-let industrial estate in
Basingstoke, and a balancing cash payment.
The warehouse is located in Crick, a prime location close to
junction 18 of the M1 motorway. It is let to Butcher's Pet Care
Limited, one of the UK's leading producers of pet food, and is the
company's only facility in the UK, having been located in the area
since 1976. The warehouse, which was constructed in two stages
between 2010 and 2016, is leased for a further 19 years without
break. The acquisition price of GBP41.3 million reflects a net
initial yield of 5.0 per cent and offers reversionary potential
compared to current rental levels for modern warehousing in the
area.
Kingsland Business Park comprises 50 buildings totalling 676,300
sq ft and is located two miles from Basingstoke town centre and
three miles from the M3 motorway. The estate has an average lease
length of approximately three years and a vacancy rate of less than
5 per cent. The disposal price of GBP70.0 million reflects a net
initial yield of 5.9 per cent and is ahead of book value at 30 June
2017.
Phil Redding, Chief Investment Officer of SEGRO, commented:
"This is SEGRO's ninth asset swap, enabling us to focus our
portfolio on our core areas and asset types, in particular on big
box warehouses in the Midlands and urban warehouses in London and
the Thames Valley, whilst mitigating the impact of a disposal on
income."
DTRE acted for SEGRO and JLL acted for Legal & General.
ENDS
For further information, please contact:
SEGRO plc
Harry Stokes (Head of Investor Relations and Research)
Tel: +44 (0) 20 7451 9124 / harry.stokes@segro.com
Lizzie Humphreys (External Communications Manager)
Tel: +44 (0) 20 7451 9129 / lizzie.humphreys@segro.com
Richard Sunderland / Claire Turvey / Eve Kirmatzis (FTI
Consulting)
Tel: +44 (0) 20 3727 1000
Notes to Editors:
ABOUT SEGRO
SEGRO is a UK Real Estate Investment Trust (REIT), and a leading
owner, manager and developer of modern warehouses and light
industrial property. It owns or manages 6.3 million square metres
(68 million square feet) of space valued at over GBP8 billion,
serving customers from a wide range of industry sectors. Its
properties are located in and around major cities and at key
transportation hubs in the UK and in nine other European
countries.
See www.SEGRO.com for further information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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