Segro, the London-listed Industrial REIT, has announced that it has completed the €83.4 mln disposal of Pegasus Park in Brussels to funds managed by Ares Management.

Segro, the London-listed Industrial REIT, has announced that it has completed the €83 mln disposal of Pegasus Park in Brussels to funds managed by Ares Management.

Earlier, Segro said the sale proceeds are in line with the end-2013 book value, and represent a yield of 9% for the vendor. This takes into account the €900,000 annualised running costs of Segro's office at Pegasus Park which will be closed as a result of this transaction.

Pegasus Park comprises a 81,500 m2 office park, 90% of which was developed between 1999 and 2003, and 7 hectares of development land adjacent to Brussels Airport. The asset generates annualised net rental income of €8.7 mln with a current vacancy rate of about 20% and a weighted average lease length to earlier of break or expiry of 3.5 years.

The asset is the fifth of the six large, non-strategic assets identified for disposal as part of Segro's strategic review in November 2011.

Belgium
Following the disposal, Segro will continue to own and manage assets in Belgium, principally two core logistics assets held in the Segro European Logistics Partnership joint venture.

At the time the disposal was first announced in July, Phil Redding, Segro’s chief investment officer, said: 'The disposal of Pegasus Park is a further important milestone in the strategic reshaping of our portfolio, reducing our exposure to regional office parks and providing funds to strengthen our balance sheet and build critical mass in our core products.'

Segro is an owner, asset manager and developer of modern warehousing and light industrial properties, with £4.5 bn (€5.7 bn) of assets (at 30 June 2014, including joint ventures at share) principally concentrated in London’s Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland.

It also develops and owns warehouses in important distribution markets in the UK, Belgium, the Netherlands and the Czech Republic, and offices in Slough and Milan. The Group has 5.8 million m2 of built space under management and a gross passing rent roll of £266 mln (Segroshare).

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