SEGRO PLC: Segro Buys Slough Office Portfolio to Meet Increased and Changing Occupier Requirements
24 December 2021 - 1:07AM
UK Regulatory
TIDMSGRO
SEGRO plc ("SEGRO" or the "Group") has acquired a portfolio of
offices on the Bath Road, Slough, from clients of AEW for GBP425
million.
The portfolio represents 89,000 sq m of built space spread
across 39 acres of land with a passing rent of GBP20 million,
reflecting a net initial yield of 4.6 per cent.
SEGRO previously developed the office portfolio and sold it as
part of its strategy to dispose of non-core assets, with the
proceeds reinvested into the Group's highly profitable development
pipeline. Since January 2016, when the office portfolio was sold,
the Slough Trading Estate has delivered capital value growth of 59
per cent and was valued at GBP2.2 billion as of June 2021.
The ageing nature and relatively short lease terms of some of
the offices means 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 96,000 sq
m of new industrial space on the Slough Trading Estate to meet this
demand, of which 58,000 sq m 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."
The acquisition will be funded from cash and bank
facilities.
CONTACT DETAILS FOR INVESTOR / ANALYST AND MEDIA ENQUIRIES:
SEGRO Soumen Das (Chief Financial Tel: +44 (0) 20 7451 9110
Officer)
Claire Mogford (Head of Investor Tel: +44 (0) 20 7451 9048
Relations)
Gary Gaskarth (External Tel: +44 (0) 20 7451 9069
Communications Manager)
FTI Consulting Richard Sunderland / Claire Turvey Tel: +44 (0) 20 3727 1000
/ Eve Kirmatzis
Notes to editors:
ABOUT SEGRO
SEGRO is a UK Real Estate Investment Trust (REIT), listed on the
London Stock Exchange and Euronext Paris, and is a leading owner,
manager and developer of modern warehouses and industrial property.
It owns or manages 8.8 million square metres of space (95 million
square feet) valued at GBP17.1 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
seven other European countries.
For over 100 years SEGRO has been creating the space that
enables extraordinary things to happen. From modern big box
warehouses, used primarily for regional, national and international
distribution hubs, to urban warehousing located close to major
population centres and business districts, it provides high-quality
assets that allow its customers to thrive.
A commitment to be a force for societal and environmental good
is integral to SEGRO's purpose and strategy. Its Responsible SEGRO
framework focuses on three long-term priorities where the company
believes it can make the greatest impact: Championing Low-Carbon
Growth, Investing in Local Communities and Environments and
Nurturing Talent.
See www.SEGRO.com for further information.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20211223005284/en/
CONTACT:
SEGRO plc
SOURCE: Segro PLC
Copyright Business Wire 2021
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