REG-Segro plc SEGRO and Schroders Complete UK Industrial Asset Swap

SEGROAnnouncement

04/10/2021 07:00

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SEGRO and Schroders Complete UK Industrial Asset Swap

 

SEGRO plc (“SEGRO”) and Schroders have completed a property swap
transaction in which SEGRO has acquired from Schroders a 256,000 sq ft urban
warehouse estate in West London for £140 million and Schroders has acquired
from SEGRO a portfolio of UK big box and urban assets totalling 880,000 sq ft
for £205 million. The balance of £65 million has been paid by Schroders to
SEGRO.

SEGRO has acquired Matrix Park, a fully let urban warehouse estate in Park
Royal, West London, close to existing SEGRO assets and the A40. The estate
also includes a 1.4 acre development site. Based on current passing rent and
lease reviews and renewals under discussion the estate generates a passing
rent of £4.1 million and has an average WAULT of 5 years.

The portfolio acquired by Schroders consists of two stand-alone, fully let big
box assets in Hams Hall, Birmingham and Brackmills, Northampton as well as
four urban assets including multi-level warehouse X2 close to Heathrow
Airport, Oakwood in Park Royal, Advent Way in North London and a cross-dock
warehouse in Radlett. Based on current passing rent and lease reviews and
renewals under discussion the portfolio generates a passing rent of £7.5
million and has an average WAULT of 6 years.

David Proctor, Managing Director of Group Investment at SEGRO, commented:

“This off-market transaction has allowed us to acquire a significant
multi-let industrial estate in one of our core markets, offering strong rental
growth potential as well as a medium to long term redevelopment opportunity.
At the same time we have been able to divest a number of relatively small
holdings, all of which were ear-marked for disposal in the near to medium
term.”

SEGRO was advised by Montagu Evans and Gerald Eve acted on behalf of
Schroders.

ABOUT SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock
Exchange and Euronext Paris, and is a leading owner, manager and developer of
modern warehouses and industrial property. It owns or manages 8.8 million
square metres of space (95 million square feet) valued at £17.1 billion
serving customers from a wide range of industry sectors. Its properties are
located in and around major cities and at key transportation hubs in the UK
and in seven other European countries.

For over 100 years SEGRO has been creating the space that enables
extraordinary things to happen. From modern big box warehouses, used primarily
for regional, national and international distribution hubs, to urban
warehousing located close to major population centres and business districts,
it provides high-quality assets that allow its customers to thrive.

A commitment to be a force for societal and environmental good is integral to
SEGRO’s purpose and strategy. Its Responsible SEGRO framework focuses on
three long-term priorities where the company believes it can make the greatest
impact: Championing Low-Carbon Growth, Investing in Local Communities and
Environments and Nurturing Talent.

See www.SEGRO.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.SEGRO.com&esheet=52502685&newsitemid=20211003005070&lan=en-US&anchor=www.SEGRO.com&index=1&md5=09193423cdff1650cb4a7ae3e206ce55)
for further information.

CONTACT DETAILS FOR INVESTOR / ANALYST AND MEDIA ENQUIRIES:

SEGRO

Soumen Das (Chief Financial Officer)

Tel: +44 (0) 20 7451 9110

Claire Mogford (Head of Investor Relations)

Tel: +44 (0) 20 7451 9048

Gary Gaskarth (External Communications Manager)

Tel: +44 (0) 20 7451 9069

FTI Consulting

Richard Sunderland / Claire Turvey / Eve Kirmatzis

Tel: +44 (0) 20 3727 1000



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