Industrial property real-estate investment trust Segro has landed its long-awaited acquisition of BAA's 50 per cent interest in the Airport Property Partnership joint venture with Aviva.
Segro has paid £111m cash for a half share in the company, which owns industrial and distribution property around major UK airports, most near London's Heathrow Airport. The deal is a good fit with Segro's existing holdings, as its west London holdings were boosted following its bottom-of-the-market acquisition of rival Brixton.
Segro also expects to offload some £240m of its own assets into the vehicle, and de-gear its balance sheet further. Analysts expect this will generate £60m of net cash. A trading statement issued in tandem reveals that annual rents have been boosted £4.6m by letting vacancies in the Brixton portfolio, though the vacancy rate is still 20 per cent.
When: 01 June 2009
Price: 265p
Performance to date: +19%
