REG-Segro PLC Segro Buys Slough Office Portfolio to Meet Increased and Changing Occupier Requirements

SEGROAnnouncement

23/12/2021 14:10

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Segro Buys Slough Office Portfolio to Meet Increased and Changing Occupier
Requirements

 

SEGRO plc (“SEGRO” or the “Group”) has acquired a portfolio of offices
on the Bath Road, Slough, from clients of AEW for £425 million.

The portfolio represents 89,000 sq m of built space spread across 39 acres of
land with a passing rent of £20 million, reflecting a net initial yield of
4.6 per cent.

SEGRO previously developed the office portfolio and sold it as part of its
strategy to dispose of non-core assets, with the proceeds reinvested into the
Group’s highly profitable development pipeline. Since January 2016, when the
office portfolio was sold, the Slough Trading Estate has delivered capital
value growth of 59 per cent and was valued at £2.2 billion as of June 2021.

The ageing nature and relatively short lease terms of some of the offices
means that this acquisition will enhance SEGRO’s ability to satisfy growing
customer demand for data centres, creative industries, life science occupiers
and other potential users of industrial space in Slough.

David Sleath, SEGRO’s Chief Executive, said:

“Over recent years we have seen a transformation in the nature and level of
occupier demand for industrial, data centre and other uses of space in Slough.
Since 2016, we have created over 96,000 sq m of new industrial space on the
Slough Trading Estate to meet this demand, of which 58,000 sq m has been
provided to support our growing data centre customers.

“Developing the highest and best use of industrial land in Slough has been
core to our purpose as a business since 1920 and we look forward to continuing
to do so following the re-acquisition of the office portfolio, allowing SEGRO
to further invest and attract new businesses into the local area.”

The acquisition will be funded from cash and bank facilities.

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  


Notes to editors:

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=52555225&newsitemid=20211223005284&lan=en-US&anchor=www.SEGRO.com&index=1&md5=c45e76de9f9b4277c218aa218253e090)
for further information.



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SEGRO plc

 


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