SEGRO plc (“SEGRO” or the “Group”) has acquired three fully leased, highly reversionary logistics warehouses in The Netherlands for a total cash consideration of €222 million.
Undertaken via three separate transactions, the assets are all in attractive locations and help to build on SEGRO’s scale in a region which acts as a key logistics hub for Continental Europe, as well as the Dutch domestic market.
They total 172,300 sq m of additional space and are in-line with SEGRO’s investment criteria in terms of returns, location and quality, including:
- A 98,000 sq m modern logistics estate in Eindhoven, which was acquired from Nuveen. It was built in 2020 and is rated BREEAM In-Use ‘Good’. It consists of three units, currently fully leased to GXO and Rhenus.
- A 37,800 sq m newly-built logistics warehouse in Heerlen in the De Beitel industrial estate. It was acquired from VolkerWessels & Vestum and is rated BREEAM ‘Excellent’. It is currently leased to B&R Premium Logistics B.V., a third-party logistics company specialising in the soft drinks industry.
- A 36,500 sq m logistics warehouse in the Vossenberg industrial estate, Tilburg, which was acquired from abrdn. The warehouse was built in 2018 and is rated BREEAM ‘Very Good’. It is currently leased to Tesla, which is an existing customer of SEGRO in both the Netherlands and Germany.
The assets currently generate approximately €10 million of headline rent, which will almost double the headline rent attributed to SEGRO’s portfolio (at share) in The Netherlands. They also offer a significant amount of reversionary potential, the majority of which is expected to be realised over the next four years, as well as the potential to increase rental values through improvements in the sustainability features of the Tilburg and Eindhoven assets, in line with the Responsible SEGRO commitment to Champion low-carbon growth.
The blended topped-up net initial yield of these assets on acquisitions is 4.6 per cent and the equivalent yield is 5.8 per cent.
Source: press release sent 27 June 2024