Feb. 20 (Bloomberg) -- Segro Plc, the U.K.’s largest publicly traded industrial landlord, sold five estates in southern England to funds run by Ignis Asset Management for 80.2 million pounds ($127 million).
The industrial estates are in Bristol, Crawley, Fareham, Portsmouth and Southampton, according to a statement today. The properties are fully occupied and generate rent equivalent to 6.3 percent of the sale price, or 7 percent with the inclusion of guarantees and rent top-ups, Segro said.
The disposals form part of Chief Executive Officer David Sleath’s plan, announced in November, to sell 1.6 billion pounds of peripheral assets, such as tailor-made manufacturing sites and suburban offices. Segro said it will use the proceeds to reduce debt and invest in logistics warehouses near major transportation hubs as well as more profitable light industrial sites near Europe’s largest cities.
“We continue to make good progress on our strategic objectives, which includes the reshaping of our portfolio to ensure that we hold the highest quality assets in the strongest markets,” Chief Investment Officer Phil Redding said in the statement.
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