SEGRO to sell £241m big box portfolio
SEGRO has agreed to sell a portfolio of big box warehouses – including properties in Leicester, Burton-on-Trent and Lutterworth – for £241 million.
The property investment and development giant has exchanged contracts with a fund advised by Morgan Stanley Real Estate Investing which is acting through a controlled subsidiary in joint venture with Thor Equities Group.
The portfolio includes seven stand-alone big box warehouses with a total floor space of 203,400 sq m.
Six of the properties are located in the Midlands, at Grove Park, Leicester; The Duke, Burton-on-Trent; Magna Park, Lutterworth and Warth Park, Raunds in the East, and DIRFT, Daventry and Hams Hall, Coleshill in the West. The final box is located at Hoddesdon, Hertfordshire.
The current passing rent of the portfolio is £10.1 million.
Phil Redding, chief investment officer at 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 per cent. 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.”
The sale is expected to complete by the end of the year.
