Segro's JV SELP acquires European logistics portfolio for €470 million

Published 28/01/2025, 10:06
© Reuters.

LONDON - SEGRO Plc (LSE:SGRO) has confirmed that SELP has agreed to acquire a portfolio of six logistics assets from Titanium Ruth Holdco Ltd, previously known as EBOX.

The SEGRO European Logistics Partnership (SELP) was created in October 2013 as a 50:50 joint venture between SEGRO and Public Sector Pension Investment Board.

The transaction, which values the properties at €470 million inclusive of property taxes and customary adjustments, was initially announced on November 12, 2024.

The portfolio encompasses approximately 370,000 square meters of logistics space that is currently fully leased. These modern, reversionary properties are strategically situated in key logistics hubs including Breda and Roosendaal in the Netherlands, as well as the Frankfurt corridor and the Rhine-Ruhr region in Germany.

The assets are generating roughly €24 million in headline rent, which translates to a blended net initial yield (NIY) of 5.0% and a net effective yield (NEY) of 5.4%.

Completion of the deal is subject to the approval of the European Union's anti-trust authorities, a process which is anticipated to conclude in the first quarter of 2025.

SEGRO's CEO, David Sleath, expressed enthusiasm for the acquisition: "We are delighted to have reached an agreement to purchase this portfolio of high-quality big box warehouses, located in some of Europe's most attractive logistics hubs."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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