24th Oct 2013 10:19
LONDON (Alliance News) - Property developers Segro PLC Thursday said it has disposed of GBP408 million of assets since July, as it signed pre-let agreements for six new developments totaling 117,000 sq metres
In an interim management statement for the period July 1 and October 23, Segro said it sold its assets at an average net initial yield of 5.9% and an average 6.3% premium to its valuation in June.
Following the sale, Segro has disposed of GBP560 million worth of assets for the year, exceeding its target of GBP300-GBP500 million for the year end.
The firm said continued appetite for attractive yields has driven demand for its assets in Europe, with UK and Germany seeing the strongest investment interest, while interest in France and Poland is improving.
During the period, the firm acquired GBP82 million of "modern" logistics warehouse assets, with an average net initial yield of 6.9% and development land in its core markets.
In addition, pre-let agreements for six new developments were signed, which included sites in Germany, Poland and Hertfordshire, England.
In Germany Segro will construct a 72,000 sq metre European distribution centre, on a 10 year lease, for sportswear manufacturer ASICS. This is Segro's largest pre-let agreement, as measured by space, to date across its portfolio, it said.
At the end of September, net debt stood at GBP2.2 billion, down from GBP2.4 billion in June
Segro will publish its full year results in February 2014.
The stock was trading at 337.00 pence Thursday morning, up 0.30 pence or 0.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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