SEGRO : acquires urban warehouse park in prime West London location

SEGRO acquires urban warehouse park in prime West London location

08 June 2020

SEGRO plc ('SEGRO') has acquired Perivale Park, a 34 acre urban warehouse estate in Perivale, West London, from Federated Hermes for £202.5 million.

The estate is located in SEGRO's core west London cluster alongside the A40 main road into Central London and within 2 miles of London's inner arterial road, the North Circular Road, making it perfectly located for distribution into London. It is also immediately adjacent to Perivale Underground Station allowing easy access for workers on the estate and excellent connectivity for local residents.

The estate provides 55,100 sq m of lettable space across 23 units and 8 acres of land which is currently leased as a vehicle compound but has medium term development potential.

Perivale Park is fully let with a WAULT of 3.4 years to break and 5.5 years to expiry. It generates a topped-up passing rent of £6.8 million, reflecting a low average in-place rent of approximately £10 per square foot with an ERV of £12.50 per square foot (excluding the rent for the land). This compares to current market rents in the region of £15 to £20 per square foot in SEGRO's £1.5 billion portfolio of estates in Park Royal and Greenford. Reflecting these low current rental levels, the topped-up net initial yield (excluding the land) upon acquisition is 3.5 per cent and the equivalent yield is 4.3 per cent.

Alan Holland, Business Unit Director for SEGRO's Greater London portfolio, said:

'Perivale Park is a perfect fit for SEGRO, sitting adjacent to the A40 and nestled between our core holdings in Greenford and Park Royal. It offers a rare opportunity to build further scale and drive value in an area where we already have considerable expertise and knowledge of the local market and customer base. It also offers medium-term development and redevelopment potential in one of London's prime, and most supply-constrained, industrial clusters.'

SEGRO was advised by Altus Property Services. ACRE Capital Real Estate acted on behalf of Federated Hermes.

CONTACT DETAILS FOR INVESTOR / ANALYST AND MEDIA ENQUIRIES:

Claire Mogford (Head of Investor Relations)
Tel: + 44 (0) 20 7451 9048 / [e-mail]

Lizzie Humphreys (External Communications Manager)
Tel: [phone] / [e-mail]

Richard Sunderland / Claire Turvey / Eve Kirmatzis (FTI Consulting)
Tel: + 44 (0) 20 3727 1000

Notes to editors:

ABOUT SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 7.8 million square metres of space (84 million square feet) valued at £11.7 billion at 31 December 2019. Its assets are positioned strategically at locations in the UK and across London and the South-East and Midlands regions, while in Continental Europe it has developments in France, Germany, Italy, Poland, Spain, The Netherlands and the Czech Republic.

For 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive.

About Federated Hermes

Federated Hermes is a leading global investment manager with $575.9 billion in assets under management as of Dec. 31, 2019. Guided by our conviction that responsible investing is the best way to create wealth over the long term, our investment solutions span 135 equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies and a range of separately managed account strategies. Providing world-class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes' over 1,800 employees include those in London, New York, Boston and several other offices worldwide. For more information, visit FederatedHermes.com. This communication has been distributed by the international business of Federated Hermes.

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