UK real estate investment trust Segro has acquired a £120m (€137m) retail park with data centre redevelopment potential from Royal London Asset Management.

The listed company said it has bought Bath Road Shopping Park in Slough comprising 10 retail warehouse units.

Segro said around a third of the units are currently vacant, thereby providing immediate opportunities for asset management or redevelopment initiatives. The remaining leases expire between 2023 and 2028.

Royal London acquired the property in January 2016 from The Crown Estate. Royal London said it has also sold the drive-through restaurant that fronts the site to tenant McDonald’s for £3.5m.

Elise Buchanan, senior asset manager at Royal London Asset Management said: “Royal London is delighted to announce the sale of the Bath Road Shopping Park, Slough. In a challenging market, the price achieved reflects a premium to the existing use value”.

Stephanie Hacking, portfolio fund manager for the Royal London Pension Property Fund that sold the asset, said: “This is an excellent sale in a difficult market at a price that is accretive to fund performance. The sale will allow the fund to recycle capital into other sectors that we consider offer better future performance prospects.”

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