4th Sep 2013 08:56
LONDON (Alliance News) - Segro PLC Wednesday said it had bought KBC Real Estate out of their Belgian logistics property joint venture for EUR33.2 million, or GBP28.1 million, part of its move to create a larger EUR1 billion logistics property joint venture in continental Europe.
The Belgian venture consists of two logistics centres. One, comprising 30,000 square metres, is occupied by logistics giant DHL and two medical supplies companies. The other, a 62,000 square metre centre, is occupied by power generation equipment supplier Cummins.
It also has a 81,000 square metre land bank, that Segro thinks has good potential for development as it sits in a major logistics area between Brussels, Antwerp and Ghent.
Segro is creating the larger European logistics property joint venture with Public Sector Pension Investment Board, a Canadian pension investment company.
"The buy-out of our joint venture partner in Belgium is an important step in the process of placing our core Continental European logistics assets into a larger logistics platform," Segro chief investment officer Phil Redding said in a statement. "By acquiring KBC's interests in these developments, we are reducing the number of joint venture partners in Continental Europe and maximising the potential benefits of creating scale in logistics."
The company's shares were down 1.6% at 283.07 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Segro