Segro, the London-listed pan-European industrial property specialist, has completed the sale of a portfolio of regional industrial estates in the UK for 拢111 mln (EUR 141 mln). The assets were acquired by an unidentified institutional UK fund.
Segro, the London-listed pan-European industrial property specialist, has completed the sale of a portfolio of regional industrial estates in the UK for 拢111 mln (EUR 141 mln). The assets were acquired by an unidentified institutional UK fund.
The portfolio comprises 10 predominantly older, secondary, multi-let industrial estates located in Portsmouth, Bristol, Yate, South Feltham, Sunbury, Crawley and Bishops Stortford. The estates comprise approximately 160,000 m2 of lettable space and the portfolio had a vacancy rate of 11.2% per cent by estimated rental value at end-June 2012.
The sale price represents a net initial yield of 8.4%, or 8.9% with the benefit of lease incentive top-ups. The sale proceeds, net of lease incentive top-ups, are about 3% above June 2012 book value.
Segro has announced or completed disposals of 拢503 mln so far in 2012, a performance at the top end of the company's 拢300-500 mln guidance range for non-core disposals during 2012.
Phil Redding, Segro鈥檚 chief investment officer, said: 'This portfolio sale marks another important step forward in the delivery of our strategy and means that we have now completed a significant part of our non-core asset disposals in the UK. This positions us well to focus on non-core disposals in Continental Europe.'
