SEGRO to sell £241m of big box warehouses

shutterstock.com/Natee Meepian

SEGRO has exchanged contracts to sell a portfolio of UK big box warehouses for £241 million to a fund advised by Morgan Stanley Real Estate Investing, acting through a controlled subsidiary in joint venture with Thor Equities Group.

The portfolio comprises seven stand-alone big box warehouses with a total floor space of 203,400 sq m. The assets being sold include DIRFT, Daventry; Grove Park, Leicester; The Duke, Burton-on-Trent and Magna Park, Lutterworth. Outside of the East Midlands further assets being sold include Warth Park, Raunds; Rye Park, Hoddesdon and Hams Hall, Coleshill.

The current passing rent of the portfolio is £10.1 million.

Phil Redding, Chief Investment Officer of SEGRO, said: “The sale of these assets marks the end of a successful period of ownership by SEGRO, generating a blended ungeared IRR since acquisition of approximately 11 per cent.

“The proceeds will be recycled into our existing and future development programme, including UK big box logistics parks developed using the Roxhill platform which we acquired last year.”

CBRE acted for Morgan Stanley and Thor in the deal.