SEGRO signs six new pre-let developments
24 October 2013
SEGRO SIGNS SIX NEW PRE-LET DEVELOPMENTS
SEGRO's largest ever pre-let, 72,000 sq m, to be constructed for ASICS in Germany
In conjunction with its Interim Management Statement issued today, SEGRO is providing further details on some of the six new pre-let developments it has secured during the period 1 July to 23 October 2013.
ASICS - Krefeld, Germany
SEGRO is to construct a new 72,000 sq m European distribution centre, on a 10 year lease, for ASICS Europe BV ('ASICS'), one of the leading international sportswear manufacturers. This is SEGRO's largest pre-let agreement, as measured by space, to date across its portfolio.
The distribution centre, to be built on development land at the 29 hectare SEGRO Logistics Park at Krefeld near to Düsseldorf, Germany, will be completed across two phases, with 36,000 sq m being constructed at each stage. The first phase is scheduled for completion during the second half of 2014, with the second phase being completed in 2015. ASICS has an option to develop a further 24,000 sq m.
This development will be one of the first undertaken by SEGRO European Logistics Partnership ('SELP').
At Krefeld, ASICS will be joining UPS and Wir Packens Logistics, which provides national distribution for Nespresso. This latest signing means that the logistics park will now be 71% occupied, with 38,000 sq m remaining for further development. Krefeld is in the heart of the Rhine Ruhr area of Germany, where SEGRO has a strong presence with 16 industrial parks serving a wide range of customers.
GeoPost UK Limited - Radlett, St Albans
SEGRO has also secured a pre-let agreement to develop a 3,400 sq m cross-dock parcel delivery centre with existing customer, GeoPost UK Limited ('GeoPost'), utilising SEGRO's land bank at Radlett Business Park, St Albans, on a 20 year lease.
GeoPost, is wholly owned by La Poste, the second largest postal operator in Europe. In the UK it is represented by the 'DPD' and 'Interlink' brands. In the UK, SEGRO has previously developed schemes for GeoPost at Southall and Enfield in Greater London. In Continental Europe, SEGRO completed a new 6,900 sq m facility at Wroclaw, Poland for DPD Polska in March 2013 and, in August 2013, 5,100 sq m was leased to another subsidiary of La Poste, in Paris. At SEGRO's Heathrow Estate, Asendia Holding AG, a joint venture between La Poste and Swiss Post, occupies 6,500 sq m.
Construction at Radlett will start in December 2013, with completion scheduled for August 2014.
This latest agreement is part of a growing trend that SEGRO has seen from postal courier companies who require buildings of approximately 3,000 sq m to 7,000 sq m located close to major conurbations to service their 'last mile' urban distribution activities.
CWS-boco - Lodz, Poland
CWS-boco, the international provider of washroom hygiene products, has signed a 10 year lease for a new 5,700 sq m distribution facility to be constructed at Lodz in Poland. This is their first agreement with SEGRO and they are scheduled to take occupancy of the building in June 2014. This will be a further development undertaken by SELP.
SEGRO Business Park Lodz is strategically located in the heart of Poland, within the Widzew industrial area, to the east of Lodz, and just 6 km from the city centre. Other occupiers at Lodz include FedEx, Unisource, ABB and SerCom.
The remaining new pre-let agreements are in the UK, Germany and Poland.
In addition to the new pre-let agreements, 8,600 sq m of light industrial space is to be developed, across three units, on a speculative basis, at West Drayton, close to London Heathrow. Given the known shortage of high quality, Grade A space in the UK market, SEGRO is confident of the demand for these units. Construction is due to commence in April 2014, with completion scheduled for December 2014.
As a consequence of these latest additions to its development pipeline, SEGRO now has 18 developments approved, contracted or under construction, representing £14 million of future annualised rental income and £78 million of future capital expenditure. The development pipeline is 77 per cent pre-let.
Commenting on the successful pre-let activity, David Sleath, SEGRO's Chief Executive, said:
"These latest pre-let agreements are part of the continuing trend we are seeing from a range of companies who require quick and direct access to major urban conurbations.
With our well situated industrial parks and strategically placed land bank, we are in an ideal position to satisfy this increased demand for urban distribution and Grade A logistics space. This demand is partly being fuelled by the increase in e-commerce related activity and subsequent changes to traditional supply chain models.
We are delighted to be working with ASICS on our largest ever pre-let agreement and to be continuing our Group-wide relationship with La Poste through their various subsidiaries and joint ventures."
ENDS
For further information, please contact:
Justin Read (Group Finance Director) Tel: +44 (0) 207 451 9110
Harry Stokes (Head of Investor Relations and Research) Tel: +44 (0) 207 451 9124
David Shriver/Peter Hewer (Tulchan) Tel: +44 (0) 207 353 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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