European warehouse and light industrial property owner Segro and Legal & General's LGIM Real Assets have completed a property swap on assets in Crick in the East Midlands and Basingstoke in the south of the UK.
Segro has acquired Legal & General’s single let warehouse at G Park, Crick for £41.3 mln (€47 mln) reflecting a 5.0% net intitial yield, while Legal & General has acquired SEGRO’s Kingsland Business Park multi-let industrial estate in Basingstoke for £70.0 mln (€80 mln) reflecting a net initial yield of 5.9%. As part of the transaction, Segro will receive a balancing cash payment.
'This is Segro’s ninth asset swap, enabling us to focus our portfolio on our core areas and asset types, in particular on big box warehouses in the Midlands and urban warehouses in London and the Thames Valley, whilst mitigating the impact of a disposal on income,' commented Phil Redding, CIO of Segro.
The asset in Crick, comprising 390,000 ft2 (36,232 m2), is let to Butcher's Pet Care for a further 19 years without a break. It is located close to junction 18 of the M1 motorway.
Kingsland Business Park comprises 50 buildings totalling 676,300 ft2 (62,830 m2) and is located two miles from Basingstoke town centre and three miles from the M3 motorway. The estate has an average lease length of approximately three years and a vacancy rate of less than 5%.
'This off-market deal allows us to increase our exposure to south east industrials and to bolster our pipeline of asset management initiatives, complementing wider portfolio activities. The deal as structured also facilitates a net investment for our investors,' said Mark Russell, senior fund manager of LGIM Real Assets.
DTRE acted for SEGRO and JLL acted for Legal & General.
