SEGRO agrees UK regional assets sale
21 May 2012
SEGRO agrees sale of UK regional assets for £204.5 million
SEGRO, Europe's leading owner-manager and developer of industrial property, announces that it has exchanged conditional contracts for the sale of four non-core industrial estates for £204.5 million to a fund advised by Harbert Management Corporation (Europe) LLC.
The portfolio being disposed of comprises four multi-let industrial estates: Heywood Distribution Park in Rochdale, Trafford Park in Manchester and Kings Norton Business Centre and Meteor Park in Birmingham. SEGRO's two regional offices in Manchester and Birmingham will be closed as a result of this disposal.
The four estates comprise approximately 440,000 sq m of lettable space. At 31 March 2012, the portfolio had a vacancy rate of 20.5 per cent by ERV and a weighted average unexpired lease term of 4.3 years to earliest break. The sale price represents a net initial yield of 6.7 per cent, or 7.4 per cent with the benefit of lease incentive top-ups. The sale proceeds, net of lease incentive top-ups, are approximately 2.9% below the 31 December 2011 book value.
Completion is contingent upon finalisation of the purchaser's bank funding arrangements, which have been credit committee approved by the purchaser's lenders.
Commenting on this disposal Phil Redding, SEGRO's Chief Investment Officer, said: "In the year to date, assuming the completion of this transaction, we have announced non-core asset disposals of £377 million, with further disposals expected during the remainder of the year. This latest announcement is another important step forward in the process of re-shaping our portfolio to focus on core markets."
- ENDS -
For further information please contact:
SEGRO
Kate Heseltine (Investor Relations Manager): +44 (0) 207 451 9042
Tulchan
John Sunnucks/David Shriver: +44 (0) 20 7353 4200
About SEGRO:
SEGRO is Europe's leading owner-manager and developer of industrial property. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange. SEGRO's portfolio comprises £5.1 billion of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. The Group serves over 1,600 customers spread across many geographies and different industry sectors. It has 5.5 million sq m of built space and a passing rent roll of £334 million (as at 31 December 2011). For further information see www.SEGRO.com
This information is provided by RNS
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