UK real estate investment trust Segro and Schroders have traded £345m (€402m) worth of UK industrial assets in a swap deal.
Segro said it has bought the fully-let 256,000sqft Matrix Park warehouse estate in West London from Schroders for £140m, and Schroders has acquired a 880,000sqft portfolio of big box and urban assets from Segro for £205m.
Schroders said the Schroder UK Real Estate Fund (SREF) is acquiring three multi-let industrial estates and one urban logistics unit located in Greater London and two national logistics assets in the West Midlands.
The assets acquired by SREF consists of two stand-alone, fully-let big box assets in Hams Hall, Birmingham and Brackmills, Northampton as well as four urban assets including multi-level warehouse X2 close to Heathrow Airport, Oakwood in Park Royal, Advent Way in North London and a cross-dock warehouse in Radlett.
David Proctor, managing director of group investment at Segro, said: “This off-market transaction has allowed us to acquire a significant multi-let industrial estate in one of our core markets, offering strong rental growth potential as well as a medium to long term redevelopment opportunity.
“At the same time we have been able to divest a number of relatively small holdings, all of which were earmarked for disposal in the near to medium term.”
Rob Cosslett, deputy fund manager for Schroder UK Real Estate Fund, Schroders Capital, said: “This landmark transaction with Segro is in line with several key strategic targets for SREF including growing the fund’s income returns, “increasing exposure to the industrial sector, strengthening future capital performance potential, and improving portfolio sustainability credentials”.
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