15th Jun 2016 06:28
LONDON (Alliance News) - Warehouse property investor SEGRO PLC on Wednesday said it has sold a portfolio of big box warehouses and development land in Italy, the Czech Republic and Poland to the SEGRO European Logistics Partnership joint venture for EUR89.4 million.
SEGRO has a 50% interest in the SEGRO European Logistics Partnership joint venture and acts as asset, property and development manager.
SEGRO said the transaction is consistent with its strategy of holding Continental European big box warehouses and development land primarily within the SELP joint venture.
SEGRO said the portfolio contains four fully-let, modern big box warehouses, containing 133,00 square metres of space, three of which are located in Italy and were purchased as part of the Vailog transaction by SEGRO in 2015, in which it bought 90% of logistics developer Vailog Srl.
The other warehouse is located within the SEGRO Logistics Park in Prague and is let to Danish pharmaceutical company, Orifarm Group AS.
The weighted average lease length of the tenancies is 11 years, SEGRO said, and the sale price of the built assets is EUR81.2 million, which reflects a topped-up initial yield of 6.3% and net initial yield of 2.3%. This is in line with book values at December 31, 2015, SEGRO said.
The portfolio also contains 18.1 hectares of land, which SEGRO said is capable of supporting around 66,000 square metres of big box warehouse development in Prague in the Czech Republic and Tychy in Poland.
SEGRO has also exchanged contracts to sell a 4.7 hectare development site near Schiphol Airport, in Amsterdam, to the joint venture, with completion expected early in the second half of 2016.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Segro