Segro sells last Italian office asset for €118.7m

Segro is selling an Italian office park for €118.7m ($127.5m).

The UK listed investor said it exchanged contracts to sell its Energy Park asset near Milan to an Italian subsidiary of Hines.

The park is the last of the six large non-strategic assets identified for disposal by the firm in 2011. 

Phil Redding, CIO, said the company’s portfolio re-shaping programme was a “vital element of its strategy to improve the quality of its asset base” as Segro focuses on modern warehousing and light industrial property.

The sale of the office campus comes at a 5% premium to Segro’s end-of-2014 book value for the asset.

Completion of the deal, at a net 7.3%, is due in the next three months.

Segro said the 61,400sqm park was fully let to tenants including Alcatel Lucent, DNV, SAP and Stanley Black & Decker.

Annual net rents are €8.8m.

An adjacent 8-hectare plot of land, containing redundant premises formerly occupied by Alcatel Lucent, will be retained by Segro.