Segro buys €472m of logistics assets from Tristan Capital and AEW

UK REIT Segro has acquired €472 mln of logistics assets from Tristan Capital and AEW Europe.

The purchase, which is planned for completion next quarter, is being made by the recently created Segro European Logistics Partnership (SELP), a joint venture between Segro and Canada’s PSP Investments. The vendors are two funds, one managed by Tristan Capital Partners (CCPIII) and the other managed by Tristan Capital Partners and AEW Europe (EPISO).

The 14 assets (10 in Germany, three in Poland and one in France) total 679,000 m2 of lettable space and generate €31.6 mln in rental income, reflecting a 7% yield.

Some 80% of the assets are less than five years old, with one building still under construction in Germany, and the deal includes 51 hectares of German development land.

David Sleath, Segro CEO, said: "The off-market acquisition of this significant portfolio, just four months after the creation of SELP, increases the joint venture’s position in some of the best logistics markets in Europe by almost 50%. The assets deliver an attractive income yield from modern, flexible buildings."

The portfolio has a 4% vacancy rate and tenants include Deutsche Post, Nagel Group, DB Schenker and Geodis. SEGRO’s net equity contribution of around €142 mln will be cash, with further funding expected at or shortly after completion.

Jones Lang LaSalle advised Segro on the transaction.

For more on the sector, see the presentation and videos from the latest PropertyEU European Logistics Briefing.