Segro spends 160m euros on new French portfolio
Segro, the owner-manager and developer of industrial property, has agreed the acquisition of a portfolio of eight prime French logistics estates.
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Rightmove: rental growth hits new high as landlords prepare for Autumn Budget
News Rents are rising but higher levels of supply are limiting growth - is buy-to-let still worth it?
By Marc Shoffman Published
-
My 8% Nationwide regular saver has matured - what are my options?
The building society’s popular 8% account is maturing for many savers. Should you stick with Nationwide or move to a competitor?
By Ruth Emery Published