Segro sees early signs of recovery

5th Nov 2009 07:31

Segro said the level of new enquiries for space has continued to trend downwards during the third quarter, though the property group added that some early signs of recovery have emerged over the last few weeks.Capital values also appear to have stabilised in the UK, according to the group.'We are encouraged that UK capital values seem to have shown early signs of stabilisation and that Continental Europe appears unlikely to suffer the same level of declines that we have seen in the UK,' said chief executive Ian Coull.The vacancy rate (by rental value) for the group excluding the Brixton portfolio, has improved since June from 11.3% to 10.9% at 30 September. Including the Brixton portfolio, the overall group vacancy rate is 14.0%. Disposals totalled £285m in the first nine months of the year at an average initial yield of 8.4%.