UK REIT Segro, formerly Slough Estates, is continuing its expansion in Continental Europe with the acquisition of a 50,000 m[sup]2[/sup] portfolio of eight warehousing and light industrial buildings close to Lyon's airport. It has agreed to pay EUR 42.5 mln at an initial yield of 6.7%, rising to 7.5% when the only unoccupied building is let, with the potential to increase this land bank further. Until now Segro's French portfolio has been almost entirely centred in and around Paris, so the acquisition represents the company's first move into the second major real estate market in France.
UK REIT Segro, formerly Slough Estates, is continuing its expansion in Continental Europe with the acquisition of a 50,000 m2 portfolio of eight warehousing and light industrial buildings close to Lyon's airport. It has agreed to pay EUR 42.5 mln at an initial yield of 6.7%, rising to 7.5% when the only unoccupied building is let, with the potential to increase this land bank further. Until now Segro's French portfolio has been almost entirely centred in and around Paris, so the acquisition represents the company's first move into the second major real estate market in France.
Most of the buildings are at the Satolas Green Business Park, 1.5 km to the north of Lyon's international airport. The units are all warehousing and light industrial type buildings, with a total office content of around 18%. All but one of the buildings are fully let, and tenants include Danzas DHL Air & Ocean and the French HQ of US medical products company Stryker. Segro’s Walter Hens said that they see excellent opportunities for their product in the French regional markets, and Lyon in particular.
