Segro has sold a portfolio of seven warehouses in the UK to Logicor, Blackstone’s European logistics platform, for £153 mln (€196 mln).

Segro has sold a portfolio of seven warehouses in the UK to Logicor, Blackstone’s European logistics platform, for £153 mln (€196 mln).

The 185,331 m2 portfolio comprises six logistics warehouses that were formerly part of the Logistics Property Partnership located in five UK towns and cities, as well as a smaller warehouse in Norfolk.

Segro, the London-listed industrial REIT, said the sale proceeds were 3% ahead of the most recently reported book value from June 2014.

The portfolio is fully let and will generate annualised net rent of £9.3 mln (€11.9 mln), representing a 6.1% yield for the vendor, rising to £11.3 mln once rent-free periods and fixed uplifts over the next five years are taken into account.

Segro said the proceeds would be used to reduce the group’s net debt.

Phil Redding, the group’s chief investment officer, said: ‘This disposal enables us to strengthen further our long-term focus on the major logistics hubs and corridors in the UK and continental Europe.’

Segro is a leading owner, asset manager and developer of modern warehousing and light industrial properties, based in Slough (UK) and Milan, with £4.5 bn (€5.75 bn) of assets.