SEGRO & UKCPT complete Industrial Asset Swap

Posted on 21 September, 2015 by Cliff Goodwin

London Stock Exchange listed property investors SEGRO and UK Commercial Property Trust (UKCPT) have completed a multi-million pound asset swap deal involving properties in Northampton and Radlett.


The deal will see industrial real estate investment trust SEGRO pay £31m to take control of a Midlands distribution warehouse on the Brackmills Industrial Estate, approximately three miles from the M1 motorway.

In return UKCPT has acquired the Ventura Park industrial estate in Radlett, Hertfordshire, for £67.1m. To square off the sale UKCPT has paid the £36.1m balance to SEGRO in cash.

Commenting on SEGRO’s latest addition to its £6.4bn asset portfolio the REIT’s chief investment officer, Phil Redding, said: “This off-market transaction is in line with our strategy to grow our logistics portfolio by acquiring a modern, well-specified distribution unit, in a prime Midlands location, on a long lease to a single occupier of undoubted covenant strength.”

The 299,236 sq ft Blackmills building is a cross-docked distribution warehouse, built in 1997 and extensively refurbished in 2007. It is leased to Asda Stores until 2028 and is used for the distribution of the retailer’s George clothing range.

Advised by Standard Life Investments, UKCPT’s Ventura Park asset is a 35-acre, multi-let industrial estate just off the M25 motorway between its junctions with the M1 and A1(M). The 589,302 sq ft estate generates around £4.2m in annual income from 15 units let to tenants including DHL, Kelly’s self-storage, B&Q, mobile communications provider EE and Warner Brothers Studios.

“Following our recent acquisition of Eldon House in the City of London, this transaction is a clear indication of the strong progress we continue to make in repositioning our portfolio and effectively utilising the company’s cash position,” explained Will Fulton, fund manager at Standard Life Investments.

“The acquisition of Ventura Park also ties in with our wider strategy to reduce our exposure to low-growth retail and invest in stock providing a sustainable income with rental growth potential.”

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