SEGRO and Schroders have completed a UK industrial asset swap transaction. Under the agreement, SEGRO has acquired from Schroders a 256,000 sq ft urban warehouse estate in West London for £140m, whilst Schroders has acquired from SEGRO a portfolio of UK big box and urban assets totalling 880,000 sq ft for £205m. The balance of £65m 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 £4.1m 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. The urban assets include 2 multi-level warehouses located 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 £7.5m and has an average WAULT of 6 years.
Managing Director of Group Investment at SEGRO David Proctor 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.”
Source: SEGRO
