SEGRO has announced that it has transferred a portfolio big box warehouses and development land into its SELP joint Venture (SELP or the SEGRO European Logistics Partnership is a 50:50 joint venture between SEGRO and a Canadian Pension Fund) for €89.4m. SEGRO’s strategy is to hold Continental European big box warehouses and development land primarily within the SELP joint venture. SEGRO acts as asset, property and development manager.
The company says that the portfolio contains four fully-let, modern big box warehouses containing 133,000 sq m of space, three of which are located in Italy (two assets in Bologna, let to global logistics operators Geodis and One Express respectively, and one in Milan let to retailer Leroy Merlin) and were acquired as part of its Vailog transaction in 2015. The fourth asset is located within the SEGRO Logistics Park in Prague and is let to the Danish pharmaceutical company, Orifarm group. SEGRO says that the weighted average lease length of the tenancies is 11 years. The sale price of the built assets is €81.2 million and reflects a topped-up initial yield of 6.3 per cent (net initial yield of 2.3 per cent), which the company says is in line with book values at 31 December 2015.
The portfolio also contains 18.1 hectares of land that the company says is capable of supporting approximately 66,000 square metres of big box warehouse development in Prague and Tychy (Poland). In addition, SEGRO says that it has also exchanged contracts to sell a 4.7 hectare development site near Schiphol Airport, in Amsterdam, to the SELP joint venture with completion expected early in the second half of 2016.
SEGRO transfers big box warehouses and development land into the SELP JV : SGRO