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UK REIT Segro has completed the acquisition of a modern logistics warehouse from the Gemini (Propinvest) portfolio.

The purchase price of £30 mln (almost €36 mln) reflects a net initial yield of 6.9%.

The 2,370 m2 logistics warehouse was developed in 2004 and is located in Barking, East London, close to the A13 and A406, providing fast access to central London, the M25 and the national motorway network. The asset is fully let to London City Bond, a warehousing and distribution company servicing the wines and spirits industry, until 2028.

Since December 2012, the property has been managed by Valad Europe, which was appointed by Deloitte to asset manage 25 of the assets within the Gemini (Propinvest) portfolio.

Segro said East London offered strong potential for expansion given the on-going regeneration of the area and limited supply of good quality logistics warehousing.