(Alliance News) - Segro PLC on Thursday acquired three fully leased, highly reversionary logistics warehouses in the Netherlands for EUR222 million.
Segro said the cash deals, undertaken via three separate transactions, will help to build scale in a region which acts as a key logistics hub for Continental Europe, as well as the Dutch domestic market.
Shares in Segro, the London-based property investment and development company, rose 0.1% to 893.60 pence in London on Thursday morning.
They total 172,300 square metres of additional space and are in-line with Segro's investment criteria in terms of returns, location and quality.
The units bought are a 98,000 sq m modern logistics estate in Eindhoven, which was acquired from Nuveen, a 37,800 sq m newly-built logistics warehouse in Heerlen in the De Beitel industrial estate and a 36,500 sq m logistics warehouse in the Vossenberg industrial estate, Tilburg, which was acquired from abrdn PLC.
The assets currently generate around EUR10 million of headline rent, which will almost double the headline rent attributed to Segro's portfolio in The Netherlands.
They also offer a significant amount of reversionary potential, the majority of which is expected to be realised over the next four years, as well as the potential to increase rental values through improvements in the sustainability features of the Tilburg and Eindhoven assets.
The blended topped-up net initial yield of these assets on acquisitions is 4.6% and the equivalent yield is 5.8%.
Head of the Netherlands at Segro Eelco Ouwerkerk said: "The acquisitions are a very positive step forward in the delivery of our plan to build scale in this important region, adding three high quality assets with reversionary potential and significantly increasing the size of our Dutch portfolio."
By Jeremy Cutler, Alliance News reporter
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