UK industrial REIT Segro has sold an office campus near Milan to Hines Italia SGR for €118.7 mln, representing a 5% premium to the book value of the asset at end-2014 and a net initial yield of 7.3%.
UK industrial REIT Segro has sold an office campus near Milan to Hines Italia SGR for €118.7 mln, representing a 5% premium to the book value of the asset at end-2014 and a net initial yield of 7.3%.
The transaction is expected to complete in the second quarter of 2015.
Energy Park is a fully let, 61,400 m2 suburban office park located around 20 kilometres from the centre of Milan. Besides offices, it comprises amenities such as a canteen, kindergarten and multi-storey car park.
The property was built by Segro and completed in mid-2014. It generates an annualised net rent of €8.8 mln from Alcatel Lucent and other tenants including DNV, SAP, Nobel Biocare and Stanley Black & Decker.
Commenting on the sale, Phil Redding, chief investment officer at Segro, said: ‘Energy Park is the last of the six, large non-strategic assets identified for disposal in November 2011. The portfolio re-shaping programme was a vital element of the Segro strategy to improve the quality of its asset base by focusing on modern warehousing and light industrial property.’
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