SEGRO has seen off a pack of developers to take the 12-acre site formerly home to Unilever’s Sara Lee factory in Slough, Berkshire.
The industrial giant secured 225 Bath Road with a £24m bid, beating rival developers Kier, Prologis, Standard Life, Jansons Property and Brockton and Landid.
The 532,814 sq ft factory – closed by Unilever in 2012 with the loss of 250 jobs – was the subject of intense competition given the strength of demand for
high-spec sheds in the South East.
According to Cushman & Wakefield, yields on industrial estates in the region have shrunk from 8% in 2009 to 5.25% as of October this year, and are expected to contract further in the near future.
SEGRO is expected to develop the site out for a high-spec shed project to capitalise on the
surging demand.
The company’s latest purchase – close to its headquarters at 258 Bath Road – comes as the firm continues to wind down its office exposure in favour of industrials, with a £250m sale of its 1m sq ft Bath Road Trading Estate expected to progress in the new year.
Three years ago 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.
chris.berkin@estatesgazette.com
