Segro buys EUR92.7m Netherlands portfolio

Real estate investment trust Segro has acquired a portfolio of three, fully-let logistics buildings in the Netherlands totalling 104,000 square metres of space, for €92.7m (£65m) from Dutch private developer Dok Vast.

The price equates to a net initial yield of 6.1% for a combined weighted average lease term of five years to first break.

Two of the buildings, which together account for 95,400 sq m, are less than three years old and are let to Nokia Solutions and Networks OY and to Tesla Motors Netherlands BV.

They are located in Tilburg, which is a prime logistics location in the Netherlands due to its inland port. The remaining building, which comprises 8,600 sq m, is located in an established industrial and logistics location.

Chief investment officer Phil Redding said: "The off-market acquisition of these properties is in line with our strategy to build scale in modern, big box warehouses in core logistics locations in the UK and Continental Europe.

“Tilburg is a prime logistics market with a shortage of quality supply, low vacancy and strong occupier demand, and should benefit further from future expansion of the port."