Segro, the owner-manager and developer of industrial property, has agreed the acquisition of a portfolio of eight prime French logistics estates.
The deal, with Foncire Europe Logistique, will cost Segro €160.8m.
The portfolio comprises 13 buildings, which are 10 years old on average, totalling approximately 255,000 square metres of lettable space and currently generating €14.2m of annualised rental income.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The purchase price represents a net initial yield of 8.4% and reversionary yield of 7.7%.
Five estates are located in established logistics locations in the Ile de France region around Paris, within close proximity to Segro's existing core logistics and light industrial estates.
The remaining three estates are located in Lyon, where Segro already has a presence.
Commenting on the acquisition, Chief Investment Officer, Phil Redding, said: "This transaction provides us with a rare opportunity to acquire some of the best logistics assets in the two strongest markets in France."
BS
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
