SEGRO is poised to sell its largest remaining office holdings as it winds down a disposal strategy to concentrate on industrial properties.
CBRE has been lined up by the REIT to bring to market its Bath Road estate in Slough, Berkshire, which is expected to attract offers in excess of £250m. Some sources said bids over £300m would be likely.
The estate comprises about 1m sq ft of existing and consented office schemes, most of which have been developed.
The portfolio includes 71,400 sq ft 210 Bath Road, and 69,000 sq ft 200 Bath Road. Tenants include Blackberry and car maker Fiat. Rents are typically £25 per sq ft.
The instruction comes almost three years after SEGRO announced a radical change in strategy involving the sell-down of £1.6bn of assets in order to rebalance its then £5.4bn portfolio.
Chief executive David Sleath’s strategy concentrated on the group being “an industrial specialist”.
Since then, it has sold a number of its office developments. Last year it sold 1.3m sq ft IQ Winnersh in Reading to Oaktree and Patrizia for £245m, and in 2012 it sold the bulk of 1.6m sq ft IQ Farnborough to funds advised by Harbert Management Corporation and XLB Property for £79.7m.
The disposal will leave SEGRO with just a handful of office assets left in its portfolio.
The office sales come as the company continues to invest in industrial development.
As revealed by Estates Gazette last week, SEGRO is in talks to buy Roxhill’s entire 1,850-acre portfolio of development land.
Announcing the sell-off strategy in April 2011, SEGRO chief executive David Sleath said: “In coming years, we will take steps to reshape the portfolio and address underperforming areas of the business. We will be pragmatic as to when we sell assets and reinvest in opportunities.”
joanna.bourke@estatesgazette.com
