December 21, 2007
Giving SEGRO over one million square metres in Germany
SEGRO has agreed a sale and leaseback with MPM (Mannesmann Plastics Machinery) on three industrial sites in Germany, at Munich, Nuremberg and Hanover. The leaseback is for a minimum term of 15 years and the transaction represents a net initial yield of 7.1%, this yield will increase with indexation. The value of the Munich site is approximately two thirds of this portfolio and marks SEGRO’s first move into this target market.
MPM is leading in the production of machines for the plastics and rubber compounding and processing industries. The company was split out of Mannesmann following its purchase by Vodafone in 2000.
The Munich site comprises 130,649 sq m of production / logistics space and 23,488 sq m of offices on 24.1 ha of land and is made up of a campus of high quality construction workspace units. This high potential site is well located to the northwest of the city within the motorway ring and within easy access of an important S-Bahn train station link. Part of the site, about 30,000 sq m, is sublet to a third party on a lease. As well as providing 15 years of secured income at an attractive yield SEGRO will be able to generate additional returns by building out parts of the site for future occupation by MPM. As well as opportunities on the site sublet to a third party when their lease expires, SEGRO will potentially be able with MPM to secure commercial zoning rights for adjoining land.
The sites at Hanover and Nuremberg respectively comprise 28,772 sq m of built area on 7.3ha of land and 31,669 sq m of built area on 5.1 ha of land. Both sites are in attractive suburban locations and will become part of SEGRO’s portfolio of trading properties.
Dr Udo Titz, General Manager Germany said:
“Munich is a market that we have been interested in for some time now, the local economy is moving from recovery to strength and this is an opportunity to enter that market in a way which directly fits with our strategy. This transaction gives us a major site at an attractive price per square metre, underpinned by a strong lease commitment combined and with a significant early development opportunity to add value by refurbishing and building-out space.”
Walter Hens, SEGRO’s Group Business Development Director said:
“This transaction gives us geographic coverage in three important German cities and increases our total space in Germany to over one million square metres (1,003,844 sq m). It continues our strategy of sale and leasebacks of sites with long-term development potential, building long-term customer relationships on a Pan-European basis. We are already seeing the benefits of similar deals we have done with the KarstadtQuelle group in Germany and with Antalis in several European Countries”.
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For further information please contact: |
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SEGRO |
+49 211 49765-0 |
Walter Hens |
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SEGRO |
+44 1753 213 335 |
Michael Waring |
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Maitland |
+44 20 7379 5151 |
Colin Browne
Peter Ogden |
About SEGRO
SEGRO is the leading provider of Flexible Business Space in Europe. Headquartered in the UK, SEGRO is listed on the London Stock Exchange and on Euronext in Paris. The company is a UK Real Estate Investment Trust (“REIT”) with operations in ten countries (it completed the exit from its US business in August 2007), serving a diversified customer base of over 1,600 customers operating in a wide range of sectors, representing both small and large businesses, from start ups to global corporations. With investment property assets of £5.1 billion (including trading properties and development assets) and around 3.9 million sq m of business space, SEGRO has an annual rental income in excess of £200 million. www.segro.com
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