Disposal

RNS Number : 8176X

SEGRO PLC

13 December 2010

 



13 December 2010

HERMES REAL ESTATE PURCHASES WESTCORE INDUSTRIAL PORTFOLIO FOR £79.25 MILLION

SEGRO, Europe's leading provider of flexible business space, announces that it has completed the sale of the Westcore Industrial Portfolio to leading fund manager Hermes Real Estate, acting on behalf of the British Telecom Pension Scheme, for a total consideration of £79.25 million. 

The Westcore Industrial Portfolio comprises six multi-let freehold industrial estates around Heathrow with a total lettable area of 71,600 sq m.  The Portfolio currently has a vacancy rate of 10.5% and a weighted average unexpired lease term of 4.7 years to earliest expiry.  The six estates are Feltham Corporate Centre (Feltham); Trinity Trading Estate (Hayes); Bilton Way, Chesterfield Way and Pasadena Close (Hayes); Stone Close (West Drayton); Blackthorne Road (Poyle); and Steyning Way (Hounslow).  

Chris Darroch, BTPS Fund Manager said, "This portfolio is a key acquisition for BTPS and one that aligns with our long-term strategy to rebalance the fund through increasing our exposure to directly held assets that offer a sustainable high income return".

Ian Sutcliffe, SEGRO's UK Managing Director said, "We have been looking to rebalance our portfolio in the UK following the successful Brixton and APP deals and this disposal reflects our strategy of focusing on prime real estate where SEGRO is able to add value. This sale follows the sale of Great Western Industrial Park last year for £110.4 million and shows the continued demand from investors for industrial properties despite the uncertain economic climate".

Dowley Turner Real Estate advised SEGRO on the disposal and CB Richard Ellis advised Hermes.

For further information, please contact:

SEGRO	[phone]	Alex Shorland-Ball
Maitland (SEGRO)	[phone]	Liz Morley
Redwood Consulting (Hermes Real Estate)	[phone]	Debbie Cracknell/ Ceri Edwards

Notes to editors:

* As at 31 March 2010

Hermes Real Estate offers client focused, property investment solutions through segregated and pooled structures, seeking to maximise risk adjusted returns.  Hermes Real Estate manages in excess of £5.8 billion** in both UK and international portfolios.

The business is organised into client focused investment and asset management specialisms, supported by a central team providing robust risk management, research and accounting support.  We also work in partnership with our sister companies of MEPC and Argent.

The investment process uses top down portfolio risk management and bottom up property selection to target assets which are highly competitive in their local marketplaces and which have sustainable income streams. 

We believe that a responsible, sustainable approach to real estate investment management is the only strategy which both protects and enhances the value of our clients' assets, now and into the future.  Therefore our principles of Responsible Property Investment (RPI) are fully integrated within all our activities

Our teams are fully aligned with clients, with remuneration linked to the long term returns generated for our clients.  We believe that this approach delivers an effective blend of entrepreneurial flair within a robust risk management framework.

The Hermes Property Unit Trust provides investors with the opportunity to participate in the principal property investment markets throughout the UK on a pooled basis, without taking direct responsibility for the acquisition and day to day management of individual properties. Hermes Property Unit Trust has consistently outperformed its benchmark return over 1,3,5 and 10 years.

Hermes Real Estate is a recognised industry leader winning Real Estate Manager of the Year in the Professional Pensions SAIMA Awards in 2008, Fund Manager of the Year in the 2008 Property Awards and Innovation of the Year in the 2009 Property Awards.

**As at 31 March 2010. Source: Hermes.

Hermes

Hermes is a multi-boutique asset manager comprising a series of specialist investment partnerships with a truly long-term and responsible approach to delivering investment returns. We offer our clients the best combination of specialist investment teams and products along with a robust operating platform from which to operate.

Our investment solutions range from alternative assets, including commodities; fund of hedge funds; 'clean tech' focused private equity; and real estate, through to specialist equity strategies in Emerging Markets; Global Equities; Small Cap equities; Europe and Japan, as well as expertise in bonds, covering inflation-linked, investment grade and high yield mandates.  Hermes invests assets on behalf of around 180 clients*** across these product areas and has £26.8bn* under management. Additionally, we help pension funds meet the highest standards of responsible long term ownership through our innovative Equity Ownership Service, which has over £60 billion* of assets under stewardship.

Hermes is the advisor and principle investment manager for the BT Pension Scheme (BTPS) and BTPS is also the 100% owner of Hermes. This unique relationship gives us a long-term parent whose requirement for investment excellence is perfectly aligned with that of all of our other clients and provides a privileged insight which informs our product development.

*** As at 31 March 2010

About SEGRO

SEGRO is Europe's leading provider of flexible business space. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange.  SEGRO's portfolio comprises £5.3 billion of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorways intersections.  The Group serves over 1,900 customers spread across many geographic and different industry sectors.  It has 5.9 million sq m of built space and a passing rent roll of £334 million as at 30 June 2010.  For more information: www.SEGRO.com

 

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