UK REIT Segro has transferred a logistics portfolio spread across Italy and the CEE region to a 50:50 joint venture with Canadian pension group PSP Investments.
The portfolio comprises four big box warehouses in Italy and the Czech Republic spanning 133,000 m2 of space and 18.1 hectares of land in Prague and the Polish city of Tychy with the capacity to build 66,000 m2 of warehouse space.
The buyer is the Segro European Logistics Partnership (SELP) joint venture. The transaction volume is €89.4 mln, reflecting a net initial yield of 2.3 per cent, with a weighted average lease length of 11 years.
In a statement, the company said the transaction was consistent with its strategy of using the SELP joint venture to hold continental European big box warehouses and development land.
Two of the Italian warehouses are located in Bologna and let to global logistics operators Geodis and One Express respectively, while the other is in Milan, where the tenant is retailer Leroy Merlin. They were acquired as part of the Vailog transaction in 2015.
The Czech warehouse is located in the Segro Logistics Park in Prague and let to Danish pharmaceutical company Orifarm group.
Segro said it had also exchanged contracts to sell a 4.7 hectare development site near Schiphol Airport near Amsterdam, to the SELP joint venture. Completion is expected early in the second half of 2016.
Segro and PSP Investments established the SELP joint venture in 2013 and owns more than €2 bn of logistics assets and development land across eight European countries. Segro acts as asset, property and development manager within the partnership.
