Segro (SGRO) made impressive progress last year with reshaping its property portfolio and reducing debt by selling off non-core assets. But while the group has in the past looked a little like a distressed seller in a moribund market, a renaissance in commercial property values meant that last year's £591m of disposals were achieved at a 4.7 per cent premium to 2012 year-end book values.
As part of the next restructuring stage, £141m has been invested in modern warehouse assets and a further £108m has been spent on development projects. Some 15 have been completed and are 85 per cent let, equating to an anticipated yield on cost of 10 per cent, and £6.6m of new annualised income when fully let. While, in October, Segro commenced a joint venture with PSP, one of Canada's largest pension fund investment managers, to form the Segron European Logistics Partnership (SELP). Contracts have already been exchanged to purchase €472m (£389m) of land and assets in Germany, Poland and France.