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SEGRO plc (LON: SGRO) has announced the acquisition of three fully leased, high-potential logistics warehouses in The Netherlands for a total cash consideration of €222 million. These acquisitions, conducted through three separate transactions, are strategically located in key logistics hubs, reinforcing SEGRO’s presence in Continental Europe and the Dutch domestic market.
Strategic Acquisitions Enhance SEGRO’s Logistics Presence
The newly acquired assets span a total of 172,300 square meters and align perfectly with SEGRO’s investment criteria concerning returns, location, and quality. These acquisitions reflect SEGRO’s strategy to scale up its operations in regions crucial for logistics and distribution across Europe.
High-Quality Assets in Key Locations
The first asset is a 98,000 square meter modern logistics estate in Eindhoven, purchased from Nuveen. Built in 2020 and rated BREEAM In-Use ‘Good,’ this estate comprises three units fully leased to GXO and Rhenus.
The second acquisition is a 37,800 square meter newly-built logistics warehouse in Heerlen, located in the De Beitel industrial estate. Acquired from VolkerWessels & Vestum and rated BREEAM ‘Excellent,’ it is currently leased to B&R Premium Logistics B.V., a third-party logistics company specializing in the soft drinks industry.
The third asset is a 36,500 square meter logistics warehouse in the Vossenberg industrial estate, Tilburg, bought from abrdn. Built in 2018 and rated BREEAM ‘Very Good,’ this warehouse is currently leased to Tesla, an existing customer of SEGRO in both the Netherlands and Germany.
Significant Rental and Sustainability Potential
These assets collectively generate approximately €10 million in headline rent, nearly doubling the headline rent attributed to SEGRO’s portfolio in The Netherlands. Additionally, they offer considerable reversionary potential, which is expected to be realized over the next four years. There is also potential to increase rental values through enhancements in the sustainability features of the Tilburg and Eindhoven assets, aligning with SEGRO’s commitment to champion low-carbon growth.
The blended topped-up net initial yield of these assets upon acquisition is 4.6 percent, with an equivalent yield of 5.8 percent. This significant yield underscores the strategic value and growth potential of these acquisitions for SEGRO’s expanding logistics portfolio.
In summary, SEGRO’s acquisition of these high-quality logistics warehouses in The Netherlands marks a strategic expansion in a vital logistics hub. With strong rental prospects and opportunities for sustainability improvements, these assets are set to enhance SEGRO’s market position and support its commitment to sustainable growth in the logistics sector.
