23rd Sep 2014 14:37
LONDON (Alliance News) - SEGRO PLC said Tuesday that its SEGRO European Logistics Partnership joint venture acquired a portfolio of logistics assets in France, the Czech Republic and Germany from Standard Life Investments European Property Growth Fund for EUR42.9 million, representing a net initial yield of 8.4%.
The 68,800 square metre portfolio of assets was built between 2000 and 2006. The assets are fully let, with a weighted average lease length to break or expiry of 1.9 years. It generates EUR3.9 million of passing rent, SEGRO said.
SEGRO has a 50% interest in SEGRO European Logistics, a joint venture with Public Sector Pension Investment Board that was formed in 2013.
"This transaction is a good example of our ability to source attractive off-market deals in markets we know well. Together with the EUR472 million of logistics acquisitions within SELP already completed this year, it also demonstrates our ability to act as a consolidator of the fragmented Continental European logistics market," said Chief Investment Officer Phil Redding in a statement.
Shares in SEGRO were trading down 2.2% at 366.10 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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