?204.5m disposal & ?82m debt facility cancellation

RNS Number : 0389G

SEGRO PLC

25 June 2012

 



25 June 2012

£204.5 million disposal completed and £82 million cancellation of debt facilities

Further to the announcement of 21 May 2012, SEGRO is pleased to announce that it has now completed the sale of four non-core UK industrial estates for £204.5 million to a fund advised by Harbert Management Corporation (Europe) LLC. 

The estates sold are Heywood Distribution Park in Rochdale, Trafford Park in Manchester and Kings Norton Business Centre and Meteor Park in Birmingham. The sale price represents a net initial yield of 6.7 per cent, or 7.4 per cent with the benefit of lease incentive top-ups. The sale proceeds, net of lease incentive top-ups, are approximately 2.9% below the 31 December 2011 book value.

SEGRO has also cancelled two committed debt facilities formerly provided to the Group by one of its 13 lending banks.  The facilities amounted to £82 million and matured in 2014.  These transactions were executed at a discount to face value and will generate a pre-tax profit to SEGRO of approximately £2.3 million in the six months to 30 June 2012. This profit does not form part of EPRA profit before tax, although the Group will also save future annualised commitment fees of approximately £0.5 million as a result of cancelling these surplus facilities.

In May 2012 the lender also transferred, with SEGRO's approval, its €30 million (£24 million) participation in a €240 million syndicated bank facility due in 2015 to the Bank of China (UK) Limited.

SEGRO retains a favourable funding position, with currently approximately £600 million of undrawn bank facilities/cash, and a strong group of international lenders, including all the major UK clearing banks.           

Commenting on the disposal and debt cancellation, Justin Read, SEGRO's Group Finance Director, said: 'The completion of this disposal of regional assets marks another important step forward with the reshaping of our portfolio to focus on core markets. Additionally, the disposal of £377 million of non-core assets in the year to date has meant that we can pay down debt and cancel excess bank facilities. We are also delighted to have been able to take advantage of the opportunity to add the Bank of China (UK) Limited to our group of relationship banks.'  

- ENDS -

For further information please contact:

SEGRO

Kate Heseltine (Investor Relations Manager):  [phone]

Tulchan

John Sunnucks/David Shriver: [phone]

About SEGRO:

SEGRO is Europe's leading owner-manager and developer of industrial property. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange. SEGRO's portfolio comprises £5.1 billion of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. The Group serves over 1,600 customers spread across many geographies and different industry sectors. It has 5.5 million sq m of built space and a passing rent roll of £334 million (as at 31 December 2011).  For further information see www.SEGRO.com

 

END

 

 

DISEASKSAAKAEEF