Segro in off market £20.5 million property swap

Avison Young industrial team acted on behalf of Segro in this off market opportunity of a simultaneous acquisition of 210,000 sq ft prime distribution warehouse in Northampton and the sale of two newly developed Premier Inn hotels in London.  The Big Box warehouse is fully let to a global third party logistics provider.    The warehouse is located on Grange Park in Northampton which is a core logistics area for UK distribution directly next to Junction 15 of the M1 motorway.  The warehouse was constructed in 2000 and the lease to Yusen Logistics has nine years to expiry.  The purchase price of £20.5 million equates to a net initial yield of 5.5%.

The Premier Inn in Uxbridge was completed in December 2015 and is close to Junction 1 of the M40 motorway, while the Premier Inn in Edmonton is adjacent to London’s inner ring-road (A406) and was completed in November 2014.  The disposal proceeds for the two assets total £20.5 million equating to a net initial yield of 4.7% in line with the valuation at June 2016.