SEGRO acquires prime warehouses in Warsaw for €43.2 million

---

---

SEGRO is pleased to announce the acquisition of Zeran Park II in Warsaw for €43.2 million (£36.9 million) from AREA Property Partners and Apollo-Rida Poland.
 
Zeran Park II, developed between 2005 and 2011, comprises modern warehouses used for urban distribution and a small office totalling 49,900 sq m of lettable space, located next to the Trasa Torunska ring road, approximately 10 km from Warsaw city centre.
 
The assets are approximately 85 per cent occupied with a weighted average unexpired lease term of 3.5 years and currently generate approximately €3.3 million (£2.8 million) of annualised rental income. The purchase price represents a net initial yield of 7.5 per cent and an equivalent yield of 8.2 per cent. Customers at Zeran Park II currently include Farutex, Leroy Merlin, Peak & Cloppenburg, Rothenberger, Schenk Process and UCB Pharma, among others.
 
This acquisition follows SEGRO's purchase in September 2012 of the Ozarow Business Centre (subsequently renamed SEGRO Business Park Warsaw) for €14.1 million (£12.1 million). The 36,600 sq m estate comprises four modern warehouses, suitable for urban distribution or logistics usage, located approximately 16 km from Warsaw city centre and adjacent to the new A2 highway which links Warsaw with Poznan and Berlin. Since acquisition, SEGRO's Polish team has made considerable progress in increasing the occupancy rate at the Park from 79 per cent to 92 per cent currently. This includes the recent letting of 2,600 sq m to existing customer, CAT, the global provider of logistics and distribution services, which is in addition to their current 7,000 sq m facility at the site. CAT has also recently extended its lease on these premises by four years.
 
SEGRO's Polish team has a strong track record in asset management and will apply this expertise at Zeran Park II, where it is already actively marketing available space and expects to be able to increase the Park's occupancy rate and rental income over the mid-term. 
 
Commenting, David Sleath, SEGRO's Chief Executive, said: 
 
"These two recent acquisitions significantly strengthen SEGRO's market position in Warsaw, Poland's largest city and a major economic centre. This is in line with our strategic objective to strengthen our presence in and around selected major conurbations by recycling capital out of non-core assets and taking advantage of attractive acquisition and development opportunities. Both parks are ideally positioned to accommodate demand for urban logistics space from businesses, such as retailers, servicing customers in the city centre and complement our existing portfolio of prime 'big box' logistics assets in Poland.
 
These transactions increase our critical mass in the Warsaw region to almost 140,000 sq m. In addition, we also have a 24,000 sq m pre-let development under construction in the region for completion in Q3 2013 and development potential for a further 50,000 sq m at Tulipan Park Warsaw. Including this latest acquisition, SEGRO now has over 700,000 sq m of modern warehousing in Poland."