UK-focused industrial specialist Segro has completed the off-market acquisition of a multi-let industrial estate in Slough from UBS Asset Management for £32.5 mln (€36 mln).
UBS AM said that the sale of Perth Trading Estate crystallised a total return in excess of 14% per annum over the four-year hold period. The firm bought the asset for £19 mln in January 2017.
The estate is in a prime location in Slough, adjacent to the north-east side of the Slough Trading Estate in close proximity to Heathrow Airport. It comprises more than 6 acres (2.43 ha), including 135,000 ft2 (12,540 m2) of warehouse and logistics space across ten units, all of which are occupied.
The estate generates a topped-up passing rent of £ 1.5 mln, reflecting a low average in-place rent of approximately £ 11 per ft2, with an estimated rental value of £ 14 per ft2.
James Craddock, Managing Director, Thames Valley, Segro said: 'This acquisition further increases Segro's footprint in Slough, where we have operated for 100 years.
'The Slough Trading Estate is one of the UK's leading locations for modern industrial warehousing and data centers and we're delighted to incorporate this estate into our business, which has the potential to provide further opportunities for our customers.'
Howard Meaney, head of real estate UK at UBS-AM real estate & private markets, commented: 'This sale has allowed us to generate substantial returns for our clients, both through the timing of this investment and by unlocking significant value through active asset management of this property.
'We maintain our long-held conviction that high-quality multi-let industrial assets in strategic locations present strong opportunities, but will look to selectively sell assets when we believe we can create stronger returns by shifting capital into other investments.'
UBS said that its asset management programme also raised the estate's contracted rental income by 30% during the holding period.
UBS-AM REPM was advised on the disposal by TT&G, while Segro was represented by JLL.
