SEGRO sells £131m assets in Q3
SEGRO sold £131m of assets and invested £174m in improving and managing its portfolio in Q3.
In a trading update for the period from 1 July to 19 October, the company said it had bought £49m of property and signed £8m in prelets, including a big-box warehouse in Rome let to a global online retailer and an urban warehouse in Paris let to FedEx and TNT.
SEGRO completed 1.7m of new developments, capable of generating £11m in rent once fully let, of which £6.1m has been leased.
SEGRO sold £131m of assets and invested £174m in improving and managing its portfolio in Q3.
In a trading update for the period from 1 July to 19 October, the company said it had bought £49m of property and signed £8m in prelets, including a big-box warehouse in Rome let to a global online retailer and an urban warehouse in Paris let to FedEx and TNT.
SEGRO completed 1.7m of new developments, capable of generating £11m in rent once fully let, of which £6.1m has been leased.
Completion of speculatively developed space increased vacancy by 1.3% to 5.7%.
On 30 September, around 5m sq ft was under development, equating to potential future rent of £28.8m, up from £26.5m on 30 June, of which 76% is now let or prelet.
The schemes are estimated to generate a yield of 7.8% with a cost to complete of £188m.
The company has also invested £41m in land for future development, including in Frankfurt for urban warehousing and in Rome for development of a prelet big box distribution warehouse.
Chief executive David Sleath said: “Our operating business has shown continued strength over the third quarter.
“Despite an initial hiatus following the UK’s referendum on EU membership, liquidity is starting to return to the UK investment market and there remains strong demand for high quality warehouse assets from a broad range of investors.”
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