UK REIT Segro is selling one of its largest non-core distribution facilities in Frankfurt to a consortium of private investors.
UK REIT Segro is selling one of its largest non-core distribution facilities in Frankfurt to a consortium of private investors.
The investment volume comes to €46 mln.
The site is a 309,000 m2 bespoke office and distribution facility formerly occupied by Neckermann, the mail order company, which filed for insolvency in July 2012 and fully vacated the site in January 2013.
The disposal is the fourth of the six large non-strategic assets identified for disposal as part of Segro's strategic review in November 2011.
The sale proceeds are €4.3 mln below the December 2012 book value. There are no rental guarantees or lease top-ups associated with the sale.
Despite reletting 25% of the site since January 2013 and hitting its target of breaking even for the full year, Segro incurred an operating loss at the site of €1 mln in the six months to 30 June 2013 due to the impact of vacant property costs.
Completion of the disposal is expected in the fourth quarter of 2013, subject to the usual pre-emption rights afforded to the local authority.
Segro has also sold the IQ Winnersh business park in the UK for €285 mln. Click on the link below for more details.
