Segro PLC (LON:SGRO) has exchanged contracts to sell a portfolio of big-box warehouses for £241mln to a fund advised by Morgan Stanley.
The property investment and development company said in an update the selling price was “in line with June 2019 book value”.
The portfolio comprises seven stand-alone big-box warehouses with a total floor space of 203,400 square metres across the UK.
The combined vacancy rate is 18.5% and unexpired lease term to the earlier of break or expiry is six years, while the current passing rent of the portfolio is £10.1mln.
The transaction is scheduled to complete by the end of the year and was executed with a joint venture between Morgan Stanley Real Estate Investing and Thor Equities Group.
“The sale of these assets marks the end of a successful period of ownership by Segro, generating a blended ungeared IRR since acquisition of approximately 11%,” said Phil Redding, chief investment officer at the company.
“The proceeds will be recycled into our existing and future development programme, including UK big-box logistics parks developed using the Roxhill platform which we acquired last year.”