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- SEGRO : SRGO – acquisition and results
SEGRO has bought the other half of a logistics joint venture it invested in alongside Moorfield Real Estate Fund II. The jv owns 12 logistics warehouses, covering 377,000 sq ft, mostly in the South East and Midlands, is fully let (to the likes of Sainsbury, Tesco, DHL, Booker and Royal Mail) and has an average lease length of 8.6 years. SEGRO is paying £95.6m for the 50% it didn’t already own. The property throws off rental income of £19.1m currently – this rises to £23.4m once certain rent free deals expire. The price SEGRO is paying works out as a 5.4% initial yield.
Also today SEGRO announced that its EPRA net asset value rose by 6.7% over the first half of 2014. It is maintaining its interim dividend at 4.9p. The loan to value ratio has risen slightly from 42% to 44%.