Segro has announced £8.6m of new rent, including £3.6m of pre-lets, in a trading update for the year so far.
The company sold its Bath Road office portfolio in January, in line with a strategy of focussing on warehouse assets.
Segro also says it intends to continue to focus on development over acquisitions.
It acquired £14.7m of urban warehouses in Europe in Q1 – reflecting a 6.7% yield – and spent circa £42m on development.
Around 571,500 sq ft of developments were completed in Q1, capable when fully let of generating £3m rent. Of this, £2.8m has been leased so far.
More than 1.7m sq ft of development is in the pipeline for 2016, with around 1m sq ft pre-let.
The company expects to spend £300m on development during 2016.
Chief executive David Sleath said: “We have had another strong quarter of signing up new rental commitments, showing a healthy improvement compared to last year, driven by pre-let agreements and letting up space developed speculatively.”
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