SEGRO has exchanged contracts to sell a portfolio of seven big-box warehouses for £241m to a fund advised by Morgan Stanley Real Estate Investing.
The fund is acting through a controlled subsidiary in a joint venture with Thor Equities Group and the deal is expected to complete by the end of the year.
The Midlands portfolio comprises 2.19m sq ft of floorspace, generating £10.1m in rent.
It includes assets in Warth Park, Raunds; Dirft, Daventry; Rye Park, Hoddesdon; Hams Hall, Coleshill; Grove Park, Leicester; The Duke, Burton-on-Trent; and Magna Park, Lutterworth.
The combined vacancy rate is 18.5% and unexpired lease term to the earlier of break or expiry is six years.
The sale price is in line with June 2019 book value, generating a blended ungeared IRR since acquisition of approximately 11%.
Phil Redding, chief investment officer at SEGRO, said: “The sale of these assets marks the end of a successful period of ownership by SEGRO. 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.”
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