Segro exits Belgian market

Segro has exited the Belgian market through the sale of warehouse assets.

The company said on Friday that in its role as venture adviser to the Segro European Logistics Partnerships (SELP) joint venture, it has sold four big box warehouses and adjacent development land.

SELP - which Segro owns half of - received net proceeds of €83.4m, equating to a net initial yield on the land and assets of 4.7%.

Segro said the disposal successfully concludes its and SELP's presence in Belgium, at a modest premium to book value, in line with the company's strategy to exit markets where it does not have, or does not expect to achieve, a scale position.

The warehouses total 92,500 sq m of space, 82% of which is occupied, with a weighted average unexpired lease length of 6.5 years to break and 7.1 years to expiry as at 30 September 2018.