SEGRO Completes £49.5 Million Acquisition
SEGRO plc ("SEGRO" or "the Group") today announces that it has acquired a portfolio of four UK logistics properties from Harbert European Real Estate Fund III, L.P, a fund advised by Harbert Management Corporation (Europe), LLC, for £49.5 million.
The purchase price, to be funded from existing resources, reflects a net initial yield of 6.3 per cent, generating annual net rent of £3.2 million. The portfolio is fully let for an average lease length of 6.2 years to the earlier of break or expiry.
The portfolio comprises four Grade A warehouses totalling 53,100 sq m all constructed since 2001: three big box distribution warehouses located within the UK logistics "golden triangle" in the Midlands and a light industrial warehouse on a business park in Norfolk.
- Hams Hall Distribution Park, Birmingham: Hams Hall Distribution Park is situated close to junctions with the M42 and M6 motorways and also benefits from a rail freight terminal. SEGRO acquiring two warehouses on the Park: a 16,500 sq m logistics unit built in 2001, let to Exel Europe, a subsidiary of Deutsche Post; and a 14,900 sq m logistics unit let to Beko PLC, built in 2003.
- Grove Park, Leicestershire: Grove Park is situated close to junctions with the M1 and M69 motorways. We have acquired a 14,600 sq m distribution warehouse, built in 2006, and let to British Gas Holdings Ltd.
- Gateway 11 Business Park, Norfolk: Gateway 11 Business Park is situated on the outskirts of Norwich, and we are acquiring a 7,100 sq m high-spec warehouse built in 2006 and let to Williams Lea Ltd, a subsidiary of Deutsche Post.
Commenting on the acquisition, SEGRO's Chief Investment Officer, Phil Redding, said:
"This transaction was a great opportunity to acquire four modern UK logistics warehouses in an off-market deal. It meets our strategic objectives of increasing our presence in the UK logistics market through the acquisition of high-quality, income generating assets that offer the potential for growth."