Segro Sells Assets Including U.K. Office Park for $435 Million
Segro Plc (SGRO), the U.K.’s largest publicly traded owner of industrial properties, sold a U.K. office park and a Frankfurt distribution facility for a total of 285 million pounds ($435 million) as the company cuts debt.
Segro sold IQ Winnersh in Reading, England, to a joint venture between Oaktree Capital Management LP and Patrizia Immobilien AG (P1Z) for a net initial yield of 5.8 percent, the company said in a statement today. The sale of the 118,200 the square-meter (1.27 million square-foot) property for 245 million pounds will be completed at the end of July.
Chief Executive Officer David Sleath said in November 2011 that Segro would sell 1.6 billion pounds of real estate to help repay debt and focus on more profitable properties. Disposals this year will reach 437 million pounds when the IQ Winnersh deal is completed, the company said today.
The U.K. asset was sold at 12 percent above the December 2012 valuation, according to the statement. The Frankfurt office and warehouse park fetched 46 million euros ($60 million), the company said in a separate announcement. The site was previously occupied by Neckermann, the mail order company that filed for insolvency in July 2012. It was sold for 4.3 million euros below the December 2012 valuation.
To contact the reporter on this story: Patrick Gower in London at email@example.com