UK-based Segro is purchasing 36 logistics buildings in France for just under EUR 160 mln from global express delivery company DHL in a sale-and- leaseback deal. The properties provide a total annual rent of EUR 11.2 mln, representing a net initial yield of 7%. Segro said the portfolio offers 'both immediate and long-tern development potential' as it expands its relationship with DHL.
UK-based Segro is purchasing 36 logistics buildings in France for just under EUR 160 mln from global express delivery company DHL in a sale-and- leaseback deal. The properties provide a total annual rent of EUR 11.2 mln, representing a net initial yield of 7%. Segro said the portfolio offers 'both immediate and long-tern development potential' as it expands its relationship with DHL.
Some 60% of the portfolio by value is in the Paris region, with 10% in Lyon, 12% in Marseille and over 5% in Lille. The remainder is located in Toulouse, Bordeaux, Nantes, Orleans and Strasbourg. 'This purchase reflects Segro's strategy of selectively purchasing sites with development potential located at key hub points on Europe's freight and logistics corridors, ' the logistics real estate investment trust said in a statement.
The portfolio has a total surface area of about 210,000 m2 on 70 hectares of land and comprises distribution and logistics centres used by the DHL Supply Chain and small cross-dock facilities used by DHL Express. All the properties are subject to new, nine-year leases with DHL, 20 of them with six-year break options and six of them with three-year break options.
Segro said nine hectares have immediate development potential and an estimated 10,000 m2 of built area can be added in these locations.
Laurent Horbette, general manager of Segro France, said the company's operations had grown significantly in the country following Segro's conversion to a SIIC, the French version of a real estate investment trust, earlier this year. 'This transaction is another important step in those expansion plans. In addition this move will consolidate our presence in Lyon, following our entry into that market earlier this year with the acquisition of the Longbow portfolio. Similarly this transaction increases our presence in Marseille, provides us with an entry into the economically strong Lille market and also provides development opportunities in the medium term.'
UK and Paris-listed Segro operates in 10 countries and has investment property assets of EUR 7.1 bn. The total annual rental income from the holdings comes to EUR 280 mln.
