AEW Europe is buying a UK office portfolio from Segro for £325m (€440m).

It bought the Slough-based portfolio for its clients at a net initial yield of 5.6%.

The deal is expected to complete this month.

The office properties, taking up more than 972,000 square feet in total, are leased to national and international businesses, with one building being developed speculatively.

Segro said it would continue to manage development until completion.

The portfolio is next to Segro’s Slough Trading Estate, the company’s largest single industrial and logistics asset.

Its chief executive David Sleath said: “As one of Europe’s most important business parks, it will continue to be a core part of Segro’s ongoing strategy, and we remain fully committed to continued investment in the remainder of the estate.”

He said the sale was part of the company’s focus on developing, owning and managing modern warehousing and light industrial property.

Over the last four years, the listed company has sold more than £2.2bn of suburban offices and non-core assets while investing £1.7bn in new assets.

Topics

Related Companies