SEGRO expands Dutch portfolio with €222m acquisition of three logistics warehouses
SEGRO plc, a leading UK Real Estate Investment Trust (REIT), has strategically expanded its presence in The Netherlands with the acquisition of three fully leased logistics warehouses for a total cash consideration of €222 million. These transactions enhance SEGRO’s footprint in key Dutch logistics hubs, critical for both Continental Europe and the domestic market.
Strategic Acquisition in Prime Locations
The acquired assets, involving three separate transactions, total 172,300 square meters of logistics space and align perfectly with SEGRO’s criteria for investment in terms of returns, location, and quality. These include:
– A modern logistics estate in Eindhoven, spanning 98,000 square meters, acquired from Nuveen. Built in 2020 and rated BREEAM In-Use ‘Good’, the estate comprises three units currently leased to GXO and Rhenus.
– A newly built 37,800 square meter logistics warehouse in Heerlen, located in the De Beitel industrial estate, acquired from VolkerWessels & Vestum and rated BREEAM ‘Excellent’. This facility is leased to B&R Premium Logistics B.V.
– A 36,500 square meter logistics warehouse in the Vossenberg industrial estate, Tilburg, acquired from abrdn, built in 2018 and rated BREEAM ‘Very Good’. This warehouse is leased to Tesla, an existing SEGRO customer in both the Netherlands and Germany.
These acquisitions not only boost SEGRO’s annual headline rent by approximately €10 million but also promise significant reversionary potential, primarily expected to be realized over the next four years. The potential to increase rental values through sustainability improvements in the Tilburg and Eindhoven assets aligns with SEGRO’s commitment to championing low-carbon growth. The blended topped-up net initial yield of these assets is 4.6 percent, with an equivalent yield of 5.8 percent.
Eelco Ouwerkerk, Head of the Netherlands at SEGRO, highlighted the strategic importance of these acquisitions: “These warehouses are in some of the most attractive and supply-constrained industrial and logistics markets in The Netherlands. The acquisitions are a very positive step forward in the delivery of our plan to build scale in this important region, adding three high-quality assets with reversionary potential and significantly increasing the size of our Dutch portfolio.”
Marco Simonetti, Managing Director, Continental Europe at SEGRO, commented on the strategic deployment of capital: “We have been able to leverage our market-leading operating platform and strong local networks to create these opportunities and profitably deploy some of the capital raised in our recent equity placing, at a time when investment markets show signs of stabilisation and the supply of new sustainable warehousing remains constrained.”
As a major player in the European industrial real estate market, SEGRO owns or manages over 10.4 million square meters of space valued at approximately £20.7 billion as of the end of 2023. The company’s strategic acquisitions in The Netherlands are set to enhance its robust portfolio, serving a diverse range of industry sectors from logistics to technology.
The strategic acquisition of these logistics assets by SEGRO not only solidifies its position in a competitive market but also reflects a savvy investment in sustainability and growth potential. As the demand for strategically located and environmentally friendly logistics spaces continues to rise, SEGRO’s latest moves are well-poised to yield significant returns and strengthen its market presence in Europe.
With these latest acquisitions, SEGRO continues to demonstrate its capability to identify and capitalize on prime real estate opportunities, enhancing its service offerings to key clients like Tesla and expanding its influence in the European logistics market.