SEGRO buys out Belgian JV partner for 33.2m euros
4 September 2013
SEGRO buys out its Belgian joint venture partner for €33.2 million
SEGRO is pleased to announce that it has bought out KBC Real Estate's ("KBC") 50% stake in its Belgian logistics property joint venture for a total consideration of €33.2 million (£28.1 million1).
SEGRO's joint venture with KBC consisted of two logistics assets totalling 92,000 sq m of built space; one at Bornem for 30,000 sq m where the occupiers are DHL and two distributors of medical supplies, Alcon and Pharma Distri Center, and the other at Rumst where 62,000 sq m is occupied by Cummins.
This buy-out follows SEGRO's announcement on 28 June 2013 that it is forming a €1 billion logistics property joint venture in Continental Europe to be known as SEGRO European Logistics Partnership ("SELP"). As indicated at the time of that announcement, the disclosed proforma financial effects of the SELP transaction included the completion of the buy-out of the Belgian joint venture and injection of these assets into the SELP vehicle.
The Belgian joint venture assets include contiguous land banks totalling 81,000 sq m. Given their attractive locations within the logistics 'Golden Triangle' of Brussels, Antwerp and Gent, there is good potential for further logistics development on this land, which is in line with the strategic objectives to grow the SELP portfolio over time through both development and acquisitions.
The buildings and land being injected into the SELP portfolio were purchased by SEGRO at a net initial yield of 7.7%.
The transaction also includes the purchase of KBC's 50% stake in two small land holdings at Zaventum and Kortenberg, which will not be injected into the SELP vehicle. SEGRO will actively seek to dispose of this land and has already exchanged contracts to sell over a third of it.
Phil Redding, SEGRO's Chief Investment Officer, said: "The buy-out of our joint venture partner in Belgium is an important step in the process of placing our core Continental European logistics assets into a larger logistics platform. By acquiring KBC's interests in these developments, we are reducing the number of joint venture partners in Continental Europe and maximising the potential benefits of creating scale in logistics. These are attractive logistics assets situated in a prime location and they will be a strong addition to SELP."
Exchange rate as at 3 September 2013: €1.18/£1
- ENDS -
For further information please contact:
SEGRO
Kate Heseltine (Investor Relations): +44 (0) 207 451 9042
Tulchan
David Shriver / Peter Hewer: +44 (0) 20 7353 4200
About SEGRO:
SEGRO is a leading owner, asset manager and developer of modern warehousing, light industrial and data centre properties, with £4.7 billion of assets (including joint ventures at Group share, as at 30 June 2013) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland. We also own offices and more specialised buildings in the Thames Valley, Brussels and Milan and smaller industrial property investments in Belgium, The Netherlands and the Czech Republic.
The Group serves over 1,400 customers spread across a diverse range of industry sectors. It has 5.2 million sq m of built space and a passing rent roll of £311 million (as at 30 June 2013). For further information see www.SEGRO.com
This information is provided by RNS
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