REG-SEGRO PLC SEGRO Completes £120 Million Land Acquisition to Pave the Way for a New Rail Freight Terminal and Logistics Scheme at Radlett, Hertfordshire

SEGROAnnouncement

30/06/2023 15:00

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SEGRO Completes £120 Million Land Acquisition to Pave the Way for a New Rail
Freight Terminal and Logistics Scheme at Radlett, Hertfordshire

 

SEGRO plc (“SEGRO” or the “Group”) the leading owner, manager and
developer of warehouse and industrial space, has completed the acquisition of
419 hectares of land at the location of the former Radlett Aerodrome in the
Upper Colne Valley, Hertfordshire.

The land is strategically located close to the M1, M25 and A1(M) and sits
alongside the Midland Main Line railway. The three sections of land that make
up the site have been acquired for £120 million (of which 50% is deferred for
12 months) from Hertfordshire County Council, Tarmac Plc and Gorhambury
Estates Company Ltd. Under SEGRO’s ownership the site will be developed into
a strategic rail freight interchange supported by up to 3.6 million square
feet of modern, sustainable logistics warehousing, including ancillary B1
(office, light industrial, research and development) and B2 (general
industrial) warehouses.

SEGRO received planning permission from the Secretary of State for the
development, which is recognised by the Government as nationally significant
infrastructure that will deliver major benefits on a national, regional and
local scale. It will also form a key part of the UK’s modal shift from road
to rail and help meet the country’s net-zero ambitions.

Works are expected to start on site in Summer 2023 with the initial focus of
this multi-year investment programme focussed on creating the rail connection
and preparing the site for development. It is anticipated that the completed
scheme will deliver around 4,000 jobs, with a further c. 500 jobs generated on
site during construction.

In line with the Company’s Responsible SEGRO commitments to Champion
low-carbon growth and Invest in its local communities and environments, the
development will incorporate a 247-hectare country park surrounding the
terminal. The park will include a 10-mile network of footpaths and
recreational features including a trim trail, outdoor gym, new children’s
play areas, new bird watching hides and a Visitor Interpretation Centre. Over
4,000 trees and 132,000 saplings will be planted, while the local habitat will
be enhanced by creating new ponds and nesting sites.

In addition to employment opportunities and environmental considerations, the
development will stimulate economic growth and enhance local infrastructure.
SEGRO is committed to a significant investment programme to fund new traffic
relieving measures, including £22 million to fund a new 1.4-mile stretch of
relief road for Park Street / Frogmore to alleviate traffic on the A5183, and
it is estimated that the completed scheme will deliver around £12 million
each year in business rates.

David Sleath, Chief Executive Officer, SEGRO, said:

“The former Radlett Aerodrome site offers a rare opportunity to bring
together the economic and environmental benefits of rail freight, provides
connectivity to key arteries of the highways network and access to a large
pool of employees. The scheme will also benefit the national and local
economies, as well as help satisfy the demands of consumers and businesses for
the sustainable movement of the goods and services we increasingly rely on in
our daily lives.

“As a long-term investor and specialist in the provision of logistics
infrastructure developments, we are proud of the benefits we’ve already
delivered across the country including at our East Midlands, Coventry and
Derby projects. The strategic partnership we recently agreed with the West
Midlands Combined Authority will see us deliver 14,000 jobs and 13.5 million
square feet of employment space on brownfield sites in the region over the
next decade and is another example of how we prioritise working in close
collaboration with local authorities and communities to maximise the benefits
and opportunities our developments and operations can bring to an area. We
look forward to employing this approach and our experience at Radlett.”

“The blueprint for the scheme will follow the successful delivery of a major
strategic rail freight terminal and logistics development at SEGRO Logistics
Park East Midlands Gateway, near Derby, where we have seen exceptional demand,
and which we expect to complete significantly ahead of schedule while
providing employment for over 5,000 people.”

For the purposes of Listing Rule 10.4, the gross asset value of the land is
£120 million and there are no historical profits attributed to the land. The
acquisition will be funded from cash and bank facilities.

Notes to editors:

The purchase is subject to additional overage charges which would be payable
to the vendors in the event that additional value is achieved through planning
consent for alternative uses and subsequent development or sale, or should the
infrastructure works cost less than assessed at the time of the acquisition.

Rail freight contributes £1.7 billion to the UK economy, with each train
removing up to 76 HGV journeys from Britain’s roads, helping to ease
congestion and meet the country`s decarbonisation targets.

SEGRO has committed to implementing Community Investment Plans in all its core
markets and anticipates that Radlett would become one of these. The Company
has already launched more than 10 of these plans across the UK and Continental
Europe. By the end of 2025 it expects to have engaged 20,000 students through
schools programmes; provided 1,500 people, the majority of whom are
unemployed, vulnerable or who have additional needs, with training or
supported them with employment opportunities; and delivered 60 projects to
enhance local environments and biodiversity.

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 9.9 million
square metres of space (106 million square feet) valued at £20.9 billion as
at 31 December 2022, 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.

Striving for the highest standards of innovation, sustainable business
practices and enabling economic and societal prosperity underpins SEGRO’s
ambition to be the best property company.

See www.SEGRO.com
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for further information.

Forward-Looking Statements: This announcement contains certain forward-looking
statements with respect to SEGRO’s expectations and plans, strategy,
management objectives, future developments and performance, costs, revenues
and other trend information. These statements are subject to assumptions, risk
and uncertainty. Many of these assumptions, risks and uncertainties relate to
factors that are beyond SEGRO’s ability to control or estimate precisely and
which could cause actual results or developments to differ materially from
those expressed or implied by these forward-looking statements. Certain
statements have been made with reference to forecast process changes, economic
conditions and the current regulatory environment. Any forward-looking
statements made by or on behalf of SEGRO are based upon the knowledge and
information available to Directors on the date of this announcement.
Accordingly, no assurance can be given that any particular expectation will be
met and you are cautioned not to place undue reliance on the forward-looking
statements. Additionally, forward-looking statements regarding past trends or
activities should not be taken as a representation that such trends or
activities will continue in the future. The information contained in this
announcement is provided as at the date of this announcement and is subject to
change without notice. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority), SEGRO does not
undertake to update forward-looking statements, including to reflect any new
information or changes in events, conditions or circumstances on which any
such statement is based. Past share performance cannot be relied on as a guide
to future performance. Nothing in this announcement should be construed as a
profit estimate or profit forecast. The information in this announcement does
not constitute an offer to sell or an invitation to buy securities in SEGRO
plc or an invitation or inducement to engage in or enter into any contract or
commitment or other investment activities. Neither the content of SEGRO’s
website nor any other website accessible by hyperlinks from SEGRO’s website
are incorporated in, or form part of, this announcement.

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 / Eve Kirmatzis, Tel: +44 (0) 20 3727 1000



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