Disposal

RNS Number : 1909I

SEGRO PLC

26 August 2016

 

26 August 2016

SEGRO AGREES SALE OF INDUSTRIAL ESTATE IN HESTON FOR £79.5 MILLION

SEGRO plc ('SEGRO', or 'the Company') has exchanged contracts to sell the Heston & Airlinks Industrial Estate ("Heston Industrial Estate") near Heathrow Airport to Capital Industrial Four BV for £79.5 million.

Heston Industrial Estate is a multi-let industrial estate, located to the north-east of Heathrow Airport close to junction 3 of the M4 motorway, comprising 481,000 sq ft of warehouse space across 47 units. The estate has a vacancy rate of around 1 per cent and a weighted average lease length to break of 5.4 years.

The disposal price reflects a topped-up net initial yield of 5.1 per cent and a small premium to the book value at 30 June 2016. Completion is expected by the end of September.

Phil Redding, Chief Investment Officer at SEGRO, said:

"This disposal reflects both our desire to focus our portfolio on more modern and less management-intensive assets, as well as the continuing, strong investor demand for multi-let warehouse assets in London. We intend to use the proceeds to help fund the development of new warehousing in our core markets."

ENDS

For further information, please contact:

SEGRO plc

Harry Stokes (Head of Investor Relations and Research)

Tel: [phone] / [e-mail]

Lindsay Dunford (External Communications Manager)

Tel: Tel: [phone] / [e-mail]

Richard Sunderland / Claire Turvey (FTI Consulting)

Tel: [phone]

Notes to Editors:

ABOUT SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages over six million square metres of space valued at £7.4 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries.

See www.SEGRO.com for further information.

 

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