Disposal of the Neckermann Site for 46m Euros
22 July 2013
SEGRO announces the sale of the Neckermann site for €46 million
SEGRO is pleased to announce that it has exchanged contracts for the sale of the Neckermann site in Frankfurt for €46.0 million (£39.71 million) in cash to a consortium of private investors.
The site is a 309,000 sq m bespoke office and distribution facility formerly occupied by Neckermann, the mail order company, which filed for insolvency in July 2012 and fully vacated the site in January 2013. The disposal is the fourth of the six large non-strategic assets identified for disposal as part of SEGRO's strategic review in November 2011.
The sale proceeds are approximately €4.3 million (£3.71 million) below the December 2012 book value. There are no rental guarantees or lease top-ups associated with the sale.
Despite successfully re-letting approximately 25 per cent of the site since January 2013 and thereby being on target to break-even for the full year, SEGRO incurred an operating loss at the site of approximately €1.0 million (£0.91 million) in the six months to 30 June 2013 due to the impact of vacant property costs.
Commenting on the disposal, Phil Redding, SEGRO's Chief Investment Officer, said: "The disposal of the Neckermann site, one of our three remaining large non-strategic assets, is an important step forward for us. Given the large and bespoke nature of this asset, the age of the buildings and planning constraints on the site, we are pleased to be able to move on so quickly after Neckermann's exit. Our local team will now be able to devote their energies in Germany to developing our core business."
Completion of the disposal is expected in the fourth quarter of 2013, subject to the usual pre-emption rights afforded to the local authority.
1 Exchange rate as at 19 July 2013: €1.16 / £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 (as at 31 December 2012, including our share of joint venture assets) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland, as well as suburban office buildings in the Thames Valley, Brussels and Milan.
The Group serves over 1,300 customers spread across a diverse range of industry sectors. It has 5.3 million sq m of built space and a passing rent roll of £318 million (as at 31 December 2012). For further information see www.SEGRO.com
This information is provided by RNS
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