UK-based Segro has acquired a 68,800 sqm logistics portfolio, worth EUR 42.9 mln, from Standard Life Investments European Property Growth Fund through European Logistics Partnership (SELP), its 50/50 joint venture with Canadian pension fund Public Sector Pension Investment Board. The premises are located in the Czech Republic, France and Germany.
The Czech assets include two warehouses with a total space of 21,800 sqm. Located in Hostivice in western suburbs of Prague, next to Segro’s existing premises, they are currently being leased to three logistics companies: Otec, UTi and Schachermayer. The transaction enlarges SELP’s portfolio in the Czech Republic to almost 100,000 sqm. In France, the company bought 25,800 sqm of warehousing space in Dugny near Paris, while in Germany, it took over a 21,200 sqm warehouse located in the Dusseldorf region.
The portfolio’s purchase price represents a net initial yield of 8.4 per cent. Built between 2000 and 2006, all the properties are fully let with a weighted average lease length to the earlier of break or expiry of 1.9 years and generate EUR 3.9 mln of passing rent, the company informed.