SEGRO sells first of six non-core assets

Industrial property owner SEGRO is planning to sell IQ Farnborough, a mixed-use business park and the first of its six large non-strategic assets to have been sold since being highlighted as non-core at the end of last year.

The park will be sold for £90.1m in two parts. The build assets, along with 18 acres of development land, have been sold to a joint venture for £79.7m, while 11 acres have been bought by two future owner-occupiers for £10.4m.

Phil Redding, SEGRO's Chief Investment Officer, said: "The disposal of IQ Farnborough marks further progress with our strategic objectives, which includes the reshaping of our portfolio to ensure that we hold the highest quality assets in the strongest markets.

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"Following our sale of five multi-let industrial estates in February, today's announcement takes disposal proceeds announced so far in 2012 to £170 m, with further disposals expected over the balance of the year."

IQ Farnborough currently provides a total lettable space of 411,000 sq ft.

The combined sale and owner-occupiers reflects a net initial yield of 6.5%, or 7.0% with the benefit of lease incentives/rental guarantees. The total sale proceeds, net of lease incentives/rental guarantees, are around 0.8% below the December 31st 2011 book value, the firm said.

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