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SEGRO (LON: SGRO), acting as venture adviser to the SEGRO European Logistics Partnership (SELP) joint venture, has announced the sale of a portfolio of logistics warehouses in Italy for a total cash consideration of €327 million. This strategic disposal aligns with SEGRO's ongoing efforts to optimize its portfolio and reinvest in new opportunities.
Details of the Disposal
The portfolio comprises four logistics warehouses, with two located in Milan and two in Rome, covering a total floor space of 338,745 square meters. Developed by Vailog SEGRO, the warehouses are fully leased to three different customers operating in the online and traditional retail sectors. The properties generate an annual passing rent of €19 million and have an average weighted average unexpired lease term (WAULT) of 10.5 years.
Strategic Rationale
Luca Sorbara, Co-Head of Italy at SEGRO, commented on the transaction: “We developed and delivered these modern, highly sustainable warehouses for some of our largest customers in Italy to support their expansion plans. This disposal has enabled us to divest some assets with long leases and limited asset management potential, allowing us to recycle capital into other attractive development and investment opportunities.”
The sale reflects SEGRO's strategy of recycling capital from assets with limited growth potential into new developments and investments that promise higher returns and better growth prospects.
About SEGRO
SEGRO is a prominent UK Real Estate Investment Trust (REIT), listed on the London Stock Exchange and Euronext Paris. It is a leading owner, manager, and developer of modern warehouses and industrial properties. As of December 31, 2023, SEGRO owns or manages 10.4 million square meters (112 million square feet) of space, valued at £20.7 billion. The company’s properties are strategically located in and around major cities and key transportation hubs across the UK and seven other European countries.
For over a century, SEGRO has been at the forefront of creating spaces that enable extraordinary achievements. From large-scale regional, national, and international distribution hubs to urban warehousing close to major population centers and business districts, SEGRO provides high-quality assets that help its customers thrive.
Future Prospects
This disposal underscores SEGRO's commitment to maintaining a dynamic and high-performing portfolio. By freeing up capital from long-term leased assets with limited management potential, SEGRO can invest in new development projects and properties that offer significant growth opportunities. This approach ensures that SEGRO continues to support the expansion and success of its diverse customer base across various industries.
