Segro's largest tenant has gone bust, prompting analysts to trim their forecasts for 2013. Neckermann, a German mail order firm, leases a large office-cum-warehouse in Frankfurt for £12m a year from the UK industrial landlord. It also leases a logistics facility some 35km east of Frankfurt for £800,000, which it sublets to another company.
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The former asset is much more problematic because it is large and bespoke. Rent guarantees ensure Segro should get its dues for 2012, but management admits there is a "significant risk" that it won't be able to replace the lost income in the short term. The valuers, CBRE, are consequently writing down the value of the asset by half, from £86m to £43m.
