18th Feb 2016 07:44
LONDON (Alliance News) - Industrial property investor SEGRO PLC on Thursday said it has struck a partnership agreement with Roxhill Development Group which will give the FTSE 250-listed group access to a portfolio of big box logistics assets in the south east of England and the Midlands.
The sites involved in the deal are at various stages of the planning process and the terms of the deal will allow SEGRO to phase its investment in the properties. Roxhill Management Rugby Ltd will be the development manager for the new partnership and follows an earlier joint venture between SEGRO and Roxhill for the Rugby Gateway site.
Should all of the sites involved in the deal be fully developed, SEGRO said the total potential capital expenditure for all the developments would be around GBP800.0 million over a 10-year period, delivering over 10.0 million square feet of big box logistics space.
SEGRO will fund the planning fees and development management costs for the projects.
"Roxhill is a market-leading developer and a partner we know, trust and for whom we have a high regard. This partnership establishes a clear path for us to achieve the scale we desire in the attractive UK big box logistics market," said David Sleath, SEGRO's chief executive.
"We are convinced that this market has very favourable long term prospects given the lack of quality supply and increasing demand from retailers and logistics operators for modern space in the right locations," Sleath added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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