SEGRO buys €222m Netherlands portfolio

SEGRO has bought three logistics warehouses in the Netherlands for a total cash consideration of €222m (£187m) – reflecting a blended net initial yield of 4.5% Undertaken via three separate transactions, SEGRO said the assets had been acquired to help the industrial REIT “scale in a region which acts as a key logistics hub for Continental Europe, as well as the Dutch domestic market”. The three properties total almost 1.8m sq ft. They comprise a 1m sq ft logistics estate in Eindhoven, which was acquired from Nuveen and let to GXO and Rhenus; a 400,000 sq ft newly-built logistics warehouse in Heerlen, bought from from VolkerWessels & Vestum and let to B&R Premium Logistics; and a 390,000 sq ft logistics warehouse in the Vossenberg industrial estate, Tilburg, which was acquired from Abrdn and is let to Tesla. The assets generate approximately €10m of headline rent, which will almost double the headline rent attributed to SEGRO’s portfolio in the Netherlands. The REIT said the assets also offered a significant amount of reversionary potential, the majority of which is expected to be realised over the next four years. Eelco Ouwerkerk, head of the Netherlands at SEGRO, said: “These warehouses are in some of the most attractive and supply-constrained industrial and logistics markets in the Netherlands. The acquisitions are a very positive step forward in the delivery of our plan to build scale in this important region, adding three high-quality assets with reversionary potential and significantly increasing the size of our Dutch portfolio.” Marco Simonetti, managing director for Continental Europe at SEGRO, added: “We have been able to leverage our market-leading operating platform and strong local networks to create these opportunities and profitably deploy some of the capital raised in our recent equity placing, at a time when investment markets show signs of stabilisation and the supply of new sustainable warehousing remains constrained.” Image from Pixabay/Pexels