Segro is to sell a portfolio of UK big box warehouses for £241 million to a fund advised by Morgan Stanley Real Estate in a JV with Thor Equities Group. The transaction is expected to complete by the end of the year. The price is in line with June 2019 book value.
The portfolio comprises seven stand-alone big box warehouses with a total floor space of 203,400 sq m. The assets being sold are located in Warth Park, Raunds; DIRFT, Daventry; Rye Park, Hoddesdon; Hams Hall, Coleshill; Grove Park, Leicester; The Duke, Burton-on-Trent and Magna Park, Lutterworth. The combined vacancy rate is 18.5 per cent and unexpired lease term to the earlier of break or expiry is 6 years. The current passing rent of the portfolio is £10.1 million.