29th Jul 2014 07:46
LONDON (Alliance News) - Segro PLC said Tuesday that it has acquired a portfolio of four UK logistics properties in a GBP49.5 million deal.
The FTSE 250-listed company has acquired the portfolio from Harbert European Real Estate Fund III, LP, a fund advised by Harbert Management Corporation (Europe), LLC.
The purchase will be funded from existing resources, said Segro, with the price reflecting an initial yield of 6.3%, generating an annual net rent roll of GBP3.2 million.
The portfolio is fully let with lessees on contracts for an average of 6.2 years to the earlier break or expiry point, said Segro.
The portfolio comprises four Grade A warehouses totalling 53,100 square metres 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.
"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," said Segro's Chief Investment Officer Phil Redding.
Shares in Segro were Tuesday morning trading 0.86% higher at 363.82 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Segro