SEGRO acquires UK logistics warehouse from Gemini (Propinvest) portfolio
SEGRO has completed the acquisition of a logistics warehouse from the Gemini (Propinvest) portfolio for GBP30m.
The purchase price represents a net initial yield of 6.9 per cent.
The 25,500 sq m logistics warehouse was developed in 2004 and is located in Barking, East London, close to the A13 and A406, providing fast access to central London, the M25 and the national motorway network. The asset is fully let to London City Bond, a bonded warehousing and distribution company servicing the wines and spirits industry, until 2028.
SEGRO views East London as an area with strong potential for expansion given the on-going regeneration of the area and limited supply of good quality logistics warehousing.
Since December 2012, the property has been managed by Valad Europe, who were appointed by Deloitte, the fixed charge receivers, to asset manage 25 of the assets within the Gemini (Propinvest) portfolio.
Phil Redding, SEGRO's chief investment officer, says: “This is an excellent opportunity to acquire a modern and well specified warehouse in a key location close to central London, where the supply of this type of product is limited, and with good national transport links. The purchase fits with our strategic objective of expanding our big box logistics platform in major transportation hubs and corridors, both in the UK and via our new joint venture, SEGRO European Logistics Partnership (SELP), in Continental Europe.”
Rob Howe, Valad Europe’s head of UK real estate, says: “Since taking over management of 25 of the Gemini assets last December, our remit has been to improve income and capital values where possible to maximise recoveries. The sale of this asset forms part of that strategy and is in line with our business plan for the portfolio as agreed with the receivers and the special servicer.”