Segro To Complete Buy Of 50% Airport Property Partnership Stake

22nd Jun 2010 07:16

LONDON (Dow Jones)--Segro PLC (SGRO.LN), a provider of flexible business space, said Tuesday it will complete the acquisition of BAA's 50% interest in the Airport Property Partnership, the joint venture with Aviva Investors, later Tuesday. MAIN FACTS: -Segro also announces it has agreed with APP and Aviva Investors to sell assets from its existing portfolio into APP for a cash consideration of GBP237 million. -The assets being sold to APP include North Feltham Trading Estate, Poyle 14 at Heathrow and the Gatwick International Distribution Centre at Crawley. -These assets will enlarge the APP portfolio from GBP447 million to GBP684 million. -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%: the weighted average remaining lease length is approximately 3.8 years (to break or expiry) and the vacancy rate on the assets being sold is 16.5%. -APP will fund the acquisition through drawing on its committed debt facilities and by approximately GBP70 million of new equity from each partner. -The transaction is expected to complete before the end of June. -Shares closed Monday at 270.7 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires June 22, 2010 02:16 ET (06:16 GMT)