Disposal

RNS Number : 7702W

SEGRO PLC

12 November 2014

 



12 November 2014

SEGRO sells £153 million portfolio of UK logistics assets

SEGRO plc ('SEGRO' or 'the Group') announces that it has sold a UK portfolio of six logistics properties and a smaller regional warehouse to Logicor, Blackstone's European logistics platform, for £153.3 million.

The sale proceeds are 3 per cent ahead of the most recently reported acquisition / book values at 30 June 2014. The portfolio is fully let and generates annualised net rent of £9.3 million which will rise to £11.2 million once rent-free periods and fixed uplifts over the next five years are taken into account.

The 185,331 sq m portfolio comprises logistics warehouses formerly part of the Logistics Property Partnership joint venture located in Bardon, Bicester, Maidstone, Sheffield, and Swindon (two warehouses), and a smaller warehouse in Norfolk purchased by SEGRO as part of a portfolio transaction in July 2014. After the transaction, SEGRO will continue to own £481 million of UK big box logistics assets (SEGRO's share, based on values at 30 June 2014, adjusted for acquisitions and disposals since the interim results).

The proceeds will be used to reduce Group net debt.

Commenting on the disposal, Phil Redding, SEGRO's Chief Investment Officer, said:

"This disposal enables us to strengthen further our long-term focus on the major logistics hubs and corridors in the UK and Continental Europe which we believe offer the optimal potential to deliver ongoing value and growth for our shareholders."

ENDS

Contact:

Harry Stokes, Head of Investor Relations and Research                             Tel: [phone]

Lizzie Humphreys, External Communications Manager                              Tel: [phone]

Stephanie Highett / Nick Taylor / Claire Turvey, FTI Consulting                    Tel: [phone]

About SEGRO: 

SEGRO is a leading owner, asset manager and developer of modern warehousing and light industrial properties, with £4.5 billion of assets (at 30 June 2014, including joint ventures at share) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland. It also develops and owns warehouses in important distribution markets in the UK, Belgium, the Netherlands and the Czech Republic, and offices in Slough and Milan. The Group serves around 1,250 customers spread across a diverse range of industry sectors. It has 5.8 million square metres of built space under management and a gross passing rent roll of £266 million (SEGRO share). 

For further information see www.SEGRO.com/investors.

 

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