Segro sells Slough office portfolio for GBP325m

FTSE 250 property firm Segro announced it had exchanged contracts to sell its large portfolio of offices on Bath Road in Slough for £325m.

The sale was to fellow real estate investors AEW Europe.

It was announced the sale price represented a net initial yield of 5.6%, a topped-up net initial yield of 6.3% and a small premium to the portfolio's book value at 30 June 2015.

"With this disposal, over the past four years, we will have disposed of over £2.2bn of suburban offices and other, non-core, assets and invested over £1.7bn in the acquisition or development of new assets," said chief executive David Sleath.

The portfolio, fronting the Slough Trading Estate, contained 972,300 sq ft of office properties leased to a number of national and international firms.

One of the office buildings was also undergoing development on a speculative basis, which Segro said it would manage until practical completion.

"The Slough Trading Estate remains our largest single industrial and logistics investment", Sleath added.

"As one of Europe's most important business parks, it will continue to be a core part of Segro's ongoing strategy and we remain fully committed to continued investment in the remainder of the Estate."

It was expected the deal would be completed in January 2016.