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SEGRO plc Completes US$2.9 Billion Disposal of Slough Estates USA


2 August, 2007

SEGRO announces that the disposal of Slough Estates USA Inc. was completed on 1st August 2007. This is further to SEGRO plc’s (“SEGRO”) announcement of 4 June 2007 regarding the proposed disposal of Slough Estates USA Inc. (“Slough Estates USA”) and the related special dividend and share consolidation. SEGRO also today confirms the timetable for the payment of that special dividend and share consolidation.

The remaining timetable of principal events is confirmed as follows:

Record Date for entitlement to the Special Dividend and for the Share Consolidation

6.00pm on Friday, 17 August 2007

Existing Ordinary Shares marked ex-Special Dividend

Monday, 20 August 2007

New Ordinary Shares admitted to the Official List and Eurolist and commencement of dealings in the New Ordinary Shares

8.00am on Monday, 20 August 2007

New Ordinary Shares enabled in CREST and CREST accounts credited with New Ordinary Shares

Monday, 20 August 2007

Payment of the Special Dividend, despatch of cheques for fractional entitlements and despatch of certificates for New Ordinary Shares in Certificated Form

By Friday, 31 August 2007

 

  • The sale of Slough Estates USA is the culmination of the strategic repositioning of the Group which began in 2004 and which has produced a very focused business model. SEGRO is a specialised investor and developer of Flexible Business Space in Europe. The complete exit from life sciences real estate in the US will enable SEGRO to concentrate its resources on building upon this core strategic position.
  • The announced gross consideration of US$2.9 billion effectively represents a premium of 26 per cent over the IFRS book value of the property assets as at 31 December 2006 and a surplus of 44 per cent over the net assets of Slough Estates USA at that date.
  • Following this completion and shareholder approvals at its recent Extraordinary General Meeting, SEGRO also confirms the return of approximately £250 million (equivalent to 53 pence per Existing Ordinary Share) to Shareholders by means of a Special Dividend. The remaining proceeds of the disposal will be used to temporarily reduce the Continuing Group's net indebtedness prior to being re-invested to fund the Continuing Group’s growth plans in Continental Europe and the UK.
  • The Special Dividend will be accompanied by a consolidation of SEGRO’s ordinary share capital – facilitating comparability of earnings and net asset values per share and share prices before and after the payment of the Special Dividend.
  • SEGRO has a substantial potential development pipeline in Europe and significant opportunities for further growth through the acquisition of property portfolios and development sites where attractive returns can be achieved - particularly in Continental Europe.

SEGRO CEO Ian Coull added

"Our former colleagues in SEUSA have now transferred to HCP where we wish them well. This also means that Marshall Lees, SEGRO Board director and President, North America, steps down from the SEGRO plc Board with immediate effect. Marshall joined the main Board in 1998 and has been instrumental in the creation of the significant value that the SEUSA disposal has realised for our investors. Our sincere thanks to Marshall and all of his team."

Unless stated otherwise, terms defined in the Circular have the same meaning in this announcement.

For further information please contact:

SEGRO

Tel: +44 7775 788 628

Michael Waring

Maitland

Tel: +44 207 379 5151

Colin Browne



This announcement is for information purposes only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice in any jurisdiction.

Overseas shareholders should inform themselves about and observe any applicable legal or regulatory requirements. If you are in any doubt about your position, you should consult your professional adviser in the relevant territory.

20070802 Completion Announcement.pdf

More Information
2007 English Press Releases  
SEGRO Enters Munich Market With €113m Sale and Leaseback21 Dec 2007
SEGRO Plc Trading Update28 Nov 2007
€160m French Sale & Leaseback Agreed with DHL15 Nov 2007
Slough Power Generation Plant to join Scottish and Southern Energy Network14 Nov 2007
Chief Operating Officer Continental Europe Appointed10 Oct 2007
SEGRO to Develop Business Park in Düsseldorf28 Sep 2007
SEGRO Shapes up for the Future14 Sep 2007
Results Announcement for the Six Months to 30 June 200729 Aug 2007
SEGRO Acquires €84.5m Business Park in Italy24 Aug 2007
SEGRO Expands French Operations into Lyon20 Aug 2007
Special Dividend and Share Consolidation20 Aug 2007
SEGRO plc Directorate Change02 Aug 2007
Results of Extraordinary General Meeting of SEGRO plc26 Jul 2007
Class 1 Circular for Proposed Disposal of Slough Estates USA09 Jul 2007
Heathrow Portfolio Expansion and Over £100M Disposal of UK Properties03 Jul 2007
SEGRO Signs Its Largest Ever Purchase In Continental Europe03 Jul 2007
Proposed Disposal of Slough Estates USA04 Jun 2007
Results of Annual General Meeting of Slough Estates plc22 May 2007
Statements to Annual General Meeting of Slough Estates plc22 May 2007
Continuing Positive Momentum for SEGRO in Continental Europe03 May 2007
Slough Trading Estate 50,000 Sq Ft Datacentre Letting to Rackspace20 Apr 2007
SEGRO Bath Road Deal Signifies Largest Thames Valley Pre-Let This Year11 Apr 2007
Slough Estates’ AGM Notice & New Corporate Identity02 Apr 2007
72,500 Sq Ft Pre-Let and £100m First Phase in Redevelopment of Winnersh Triangle28 Mar 2007
Financial Results for the Year to 31 December 200608 Mar 2007
Slough Estates Sells Former Gin Factory22 Feb 2007
Notice of Results12 Feb 2007
Slough Estates People Present £120,000 Cheque To Barnardo's30 Jan 2007
Further Sale at Elstree and New Acquisition in Peterborough19 Jan 2007
West London Expansion Continues with Industrial Estate Acquisition15 Jan 2007