20th Dec 2016 10:15
LONDON (Alliance News) - SEGRO PLC on Tuesday said it has bought a 210,000 square foot prime, big box distribution warehouse in Northampton in exchange for two recently developed Premier Inn hotels in Uxbridge and Edmonton.
The FTSE 250-listed warehouse property investor said the property swap was in line with its strategy of owning a portfolio of well-specified and located modern big box and urban warehouses.
The counter party to the asset swap has "asked to remain confidential", SEGRO said.
The big box warehouse is fully let to third party logistics provider Yusen Logistics Co Ltd and is located in Grange Park, Northampton. The warehouse was built in 2000 and the lease to Yusen has nine years to expiry.
SEGRO said the purchase price of GBP20.5 million equates to a net initial yield of 5.5%.
Meanwhile the two hotels, let to Whitbread PLC-owned hotel chain Premier Inn, are in roadside locations, with the Uxbridge hotel completed in December 2015 and the Enfield hotel in November 2014. The disposal proceeds for the two assets was GBP20.5 million, equating to a net initial yield of 4.7% in line with the June 2016 valuation.
"The acquisition of a big box warehouse in exchange for two hotels is in line with SEGRO's strategy of building scale in its UK big box portfolio while also crystallising gains we have generated from the development of higher-value use assets on industrial land," said Chief Investment Officer Phil Redding.
Shares in SEGRO were flat at 443.40 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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