SEGRO has exchanged contracts to sell a portfolio of UK big box warehouses for £241m, in line with book value.
The company said it would recycle the capital into its existing and future development programme.
The portfolio, which comprises seven assets, has generated a blended ungeared IRR of approximately 11% since SEGRO acquired them.
Morgan Stanley Real Estate Investing and joint venture partner Thor Equities Group has acquired the assets, which are located in Warth Park, Raunds; DIRFT, Daventry; Rye Park, Hoddesdon; Hams Hall, Coleshill; Grove Park, Leicester; The Duke, Burton-on-Trent; and Magna Park, Lutterworth.
The combined vacancy rate is 18.5% and unexpired lease term to the earlier of break or expiry is 6 years. The current passing rent of the portfolio is £10.1m.
The transaction is expected to complete by the end of the year.
Phil Redding, chief investment officer of SEGRO, said: “The sale of these assets marks the end of a successful period of ownership by SEGRO, generating a blended ungeared IRR since acquisition of approximately 11%. The proceeds will be recycled into our existing and future development programme, including UK big box logistics parks developed using the Roxhill platform which we acquired last year.”
SGRO : SEGRO sells £241m portfolio of big box warehouses