Canada’s Public Sector Pension Investment Board (PSP Investments) has bought a half share in a European portfolio of ’big box’ warehouses and land from Segro, a UK real estate investment trust (REIT).
Segro said it sold the portfolio of assets in Italy, the Czech Republic and Poland to its ongoing joint venture with PSP Investments – Segro European Logistics Partnership (SELP) – for €89.4m.
The CAD112bn (€77.6bn) PSP Investments and Segro each own 50% of the joint venture they established two years ago, and Segro acts as its asset, property and development manager.
The portfolio includes four fully-let, modern big-box warehouses with 133,000sqm of space, three of which are located in Italy and one in Prague.
Two of the Italian warehouses are in Bologna, and let to international logistics firms Geodis and One Express, and one is in Milan, let to retailer Leroy Merlin.
The fourth warehouse is in the Segro Logistics Park in Prague, and is let to Danish pharmaceuticals company Orifarm.
The weighted average lease length of the tenancies is 11 years, and the sale price of the built assets is €81.2m.
The portfolio also contains 18.1 hectares of land capable of supporting approximately 66,000sqm of big-box warehouse development in Prague and Tychy in Poland.
Segro said the deal was in line with its strategy of holding continental European big box warehouses and development land mainly within the SELP joint venture.
Big-box warehousing describes large-construction storage space that has typically more than 150,000sqft of space per unit, is located around transport hubs and is used for national and regional distribution.
In addition to the transaction, Segro said it had exchanged contracts to sell a 4.7 hectare development site near Amsterdam’s Schiphol Airport to SELP.
This deal is expected to be completed in the second half of this year.