Two Birmingham business parks sold as part of £204.5m deal
INDUSTRIAL property developer and owner Segro has sold two Birmingham business parks as part of a £204.5m disposal package as it seeks to re-shape its property portfolio.
Kings Norton Business Centre and Meteor Park in Aston – together with Heywood Distribution Park in Rochdale and Trafford Park in Manchester – have been sold to a fund advised by Harbert Management Corporation (Europe).
Segro has been seeking a buyer for the parks since the start of the year and 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 disposal means Segro has rid itself of £377m of non-core assets so far this year.
Justin Read, its 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.”
Segro has also cancelled two debt facilities formerly provided to the group by one of its 13 lending banks. The facilities amounted to £82m and matured in 2014.
The company says it retains a favourable funding position, with approximately £600m of undrawn bank facilities/cash and a strong group of international lenders, including all the major UK clearing banks.
In February it was announced that Meteor Park was fully occupied after two new tenants were signed up.
The latest deal at Kings Norton Business Centre was announced in March. Automotive parts supplier Euro Car Parts chose the park as the location for its latest branch, signing a ten year lease for a 7,000 sq ft unit.
