Segro sells £237m of assets into Aviva JV

22nd Jun 2010 07:27

Real estate giant Segro will today complete the acquisition of BAA's 50% interest in the Airport Property Partnership (APP) joint venture with Aviva Investors, and sell assets from its existing portfolio into APP for £237m cash.The deal, first announced in April, cost Segro, formerly Slough Estates, £111.3m. APP is focused on airport-related industrial assets in and around major UK airports.Assets being sold into the joint venture include North Feltham Trading Estate, Poyle 14 at Heathrow and the Gatwick International Distribution Centre at Crawley, and will grow the APP portfolio to £684m.The price of the assets being sold to APP represents a net initial yield of 5.1% and a net equivalent yield of 7.2%."Through these two transactions, Segro has significantly strengthened its Heathrow portfolio, one of our core locations, created the opportunity to apply our management skills across a broader asset base and generated net disposal proceeds for the group," chief executive Ian Coull said . "We are looking forward to working with Aviva Investors and adding value to this combined portfolio."