UK REIT Segro is selling Heston & Airlinks Industrial Estate near Heathrow Airport for £79.5 mln (€93 mln), reflecting a topped-up net initial yield of 5.1%.
The buyer is a Dutch-registered entity of Capital Industrial, a property investment and management company focused on industrial assets in the London area.
Heston Industrial Estate is a multi-let industrial estate, located to the northeast of Heathrow Airport close to junction 3 of the M4 motorway. The asset comprises 44,700 m2 of warehouse space across 47 units. The estate has a 99% occupany rate and a weighted average lease length to break of 5.4 years.
The disposal price reflects a topped-up net initial yield of 5.1% and a small premium to the book value at end-June 2016. Completion is expected by the end of September.
'This disposal reflects both our desire to focus our portfolio on more modern and less management-intensive assets, as well as the continuing, strong investor demand for multi-let warehouse assets in London. We intend to use the proceeds to help fund the development of new warehousing in our core markets,' said Phil Redding, chief investment officer at Segro.
Segro owns and manages a £7.4 bn portfolio of over six million m2 of warehouses and light industrial property in and around major cities and at key transportation hubs in the UK and in nine other European countries.
