Coventry and Northampton parks anchor SEGRO’s £3bn logistics JV
More than 7m sq ft of Midlands industrial space is set to be included in a joint venture between SEGRO and an unnamed major institutional investor.
The firm says it has agreed heads of terms for the formation of the new logistics joint venture, which will be “seeded” with three of SEGRO’s existing locations at Radlett, Coventry and Northampton.
SEGRO Park Coventry offers up to 2.1m sq ft of industrial and warehouse space on 73 acres in the West Midlands, while more than 5m sq ft of space is being developed in Northampton. Current tenants include Amazon and DHL.
More than £800m will be spent by the JV to develop and operate those sites, which are expected to deliver a total of approximately 10m sq ft of space, equating to an anticipated £135 million headline rent and fully developed gross asset value of approximately £3bn.
Subject to final approvals and due diligence, the agreement is expected to be made formal in the second half of the year.
Earlier this week SEGRO, which is currently locked in a battle with Prologis over the future of a planned development on the East Midlands Freeport investment zone, turned down a £12bn takeover bid from its US rival.
Prologis then went public with its offer in a bid to force a deal through.
David Sleath, chief executive of SEGRO said: “This latest strategic partnership allows us to bring together some of the UK’s most attractive logistics parks within a capital-efficient structure, deepening our investment capacity and showcasing the strength of our asset management platform.”
