SEGRO plc has exchanged contracts to sell a portfolio of U.K. big-box warehouses for £241 million ($317 million) to a fund advised by Morgan Stanley Real Estate Investing, acting through a controlled subsidiary in joint venture 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 square meters (2.2 million square feet). The assets 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 percent, and the unexpired lease term to the earlier of break or expiry is six years. The current passing rent of the portfolio is £10.1 million.
Phil Redding, CIO of SEGRO, said, “The sale of these assets marks the end of a successful period of ownership by
