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SEGRO sells Belgian warehouses to Tritax EuroBox

SEGRO sells Belgian warehouses to Tritax EuroBox – SEGRO, in its role as venture adviser to the SEGRO European Logistics Partnership joint venture, has sold four big box warehouses and adjacent development land in Belgium to Tritax EuroBox.

The partnership has received net proceeds of €83.4m (SEGRO owns 50 per cent of the partnership so its share of the proceeds is €41.7m), equating to a net initial yield to SEGRO on the land and assets of 4.7 per cent (topped-up net initial yield of 5.6 per cent including a one year rent guarantee on the unoccupied space).

The warehouses total 92,500 sq m of space, of which 82 per cent is occupied (by ERV), with a weighted average unexpired lease length of 6.5 years to break and 7.1 years to expiry as at 30 September 2018.

SEGRO said: “This disposal successfully concludes SEGRO and SELP’s presence in Belgium, at a modest premium to book value, in line with SEGRO’s strategy to exit markets where it does not have, or does not expect to achieve, a scale position.”

The Rumst and Bornem assets, situated 15 km apart, are strategically located in established logistics parks close to the A1 (E19) and A12 motorways, respectively, which link Brussels and Antwerp, delivering excellent north/south motorway access. The logistics parks also benefit from good port and airport connectivity, with the Port of Antwerp c.35 km north and Brussels Airport c.35 km to the south.

The four class A warehouses, which were purpose-built between 2002 and 2011, have a combined gross internal area of c.92,500 sqm, eaves height of 10 metres and significant loading provisions and yard areas. Situated in prime logistics locations, benefiting from growing occupier demand and limited availability of logistics buildings, this portfolio offers scope for income growth and value enhancement through asset management and development opportunities.

All of the operating buildings are key logistics assets for the occupiers, who are strong covenants and are on leases with a combined WAULT to expiry of 7.1 years and WAULT to break clauses of 6.5 years. Rents are subject to annual indexation.


This investment comprises two modern warehouses with a total gross internal area of c.59,000 sqm and an office building of 2,500 sqm. These are fully let to Cummins NV, part of Cummins Inc., a Fortune 500 corporation, listed on the New York Stock Exchange with a market capitalisation of c.$22.8 billion that designs, manufactures, distributes and services a broad portfolio of power solutions globally. Together these buildings represent a principal distribution hub for Cummins in the EMEA region.

The Cummins leases, representing 67% of the total rental income from the combined portfolios, are co-terminus at 31 December 2025, providing an unexpired lease term of 7.2 years.

There are also two unutilised plots of land at the Rumst site, totalling c.3.4 hectares that offer attractive development potential.


The modern standing assets comprise two modern warehouses which combined have a gross internal area of c.31,000 sqm.

The first building is a multi-let warehouse with two interconnected units. Unit 1 is let to Alcon-Couvreur NV (a world leader in eye care and part of Novartis, one of the world’s largest pharmaceutical companies), on a lease that expires on 31 August 2027, subject to a break option in August 2022, which includes a penalty if the break is exercised. This provides a maximum unexpired lease term of nine years. Unit 2 is let to Pharma-Distri Center NV (an independent logistics business, which stores, packs and distributes pharmaceutical products across Europe for a range of leading pharmaceutical clients), on two co-terminus leases, expiring on 31 January 2020, providing 1.25 years unexpired term. The tenant provides logistics services to the adjacent tenant Alcon-Couvreur NV.

The second building is a vacant warehouse which is subject to a 12-month rent and service charge guarantee from the vendor. This asset represents 15% of the total portfolio’s ERV and will be marketed to new potential tenants, thereby offering scope for income growth. There are also three vacant plots of land at the Bornem site, totalling 4.5 hectares.

Nick Preston, Fund Manager of Tritax EuroBox, commented: “We are delighted to announce the third investment for Tritax EuroBox plc, with the acquisition of these two logistics assets, each situated in prime locations that benefit from excellent transport connectivity. These modern, well specified standing assets are critical to the operations of the tenants with leases subject to annual indexation. Belgium is a strategically important location within the European logistics market, due to its central geographic position between international ports and major population centres. 
With the support and sector specific expertise of our appointed asset manager in Belgium, Logistics Capital Partners (“LCP”), we are confident of delivering the identified business plans to produce further value from these assets and development land thereby capitalising on this attractive logistics location with increasingly strong supply/demand fundamentals.”

SGRO / EBOX / BOXE : SEGRO sells Belgian warehouses to Tritax EuroBox

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