Segro, the European owner-manager and developer of industrial property, has agreed to sell IQ Farnborough, a mixed-use business park, for an expected price of 拢90 mln (EUR 110 mln).
Segro, the European owner-manager and developer of industrial property, has agreed to sell IQ Farnborough, a mixed-use business park, for an expected price of 拢90 mln (EUR 110 mln).
IQ Farnborough is the first of Segro's six large non-strategic assets to have been sold since being highlighted as non-core at Segro's Investor Day in November 2011. The deal adds to Segro's sale of five multi-let industrial estates in February, and takes disposal proceeds so far in 2012 to 拢170 mln.
The disposal has been structured in two parts. The existing built assets and 18 acres of development land have been sold to a joint venture between funds advised by Harbert Management Corporation and XLB Property as Asset Manager for 拢80 mln. Additionally, the sale of 11 acres of development land to two future owner-occupiers for 拢10 mln has been agreed. These latter sales are principally conditional upon receipt of final planning approval and are expected to be finalised by the end of 2012.
IQ Farnborough currently provides a total lettable space of 411,000 sq ft (38,000 m2). At 31 December, 2011, it had a vacancy rate of 13.1% and a weighted average unexpired lease term of 3.8 years to earliest break. The combined sale to Harbert/XLB and owner-occupiers reflects a net initial yield of 6.5%, or 7.0% with the benefit of lease incentives/rental guarantees.
