Freight Transport Association

Multimodal 2019

SEGRO acquires prime distribution warehouse in property swap

SEGRO has acquired a 210,000 sq ft prime, big box distribution warehouse in Northampton in exchange for two recently developed Premier Inn hotels in Uxbridge and Edmonton, in line with its strategy of owning a portfolio of well specified and located modern big box and urban warehouses. The counterparty to the asset swap has asked to remain confidential.

The big box warehouse is fully let to Yusen Logistics, the global third party logistics provider, as an integral element of its contract with Samsung. The warehouse is located in 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 per cent.

The hotels, let to Premier Inn, are in roadside locations at the edge of two recently completed SEGRO developments in Uxbridge and Enfield. 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 (the 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 per cent, in line with the valuation at June 2016. 

Phil Redding, SEGRO’s Chief Investment Officer, commented:

“The acquisition of a big box warehouse in exchange for two hotels is in line with SEGRO’s strategy of building scale in its UK big box portfolio while also crystallising gains we have generated from the development of higher-value use assets on industrial land.”

Separately, SEGRO has announced that it has secured a long term letting for a 48,000 sq ft unit at Navigation Park, Enfield to Caesarstone (UK) Ltd, a leading global company for quartz surfaces used mainly as countertops, of excellent quality, inspirational designs and strong service, marketed under the premium brand Caesarstone®.

Navigation Park is the first certified ‘carbon neutral’ development in Greater London, enabling the building to produce more energy than it uses. The development comprises of three speculative units which reached practical completion in June of this year. Unit 1 was let off plan to Camden Town Brewery in April.

Alan Holland, Business Unit Director for Greater London, SEGRO said:

“We’re delighted to welcome Caesarstone to our rich mix of customers who are using SEGRO units to design, develop and distribute a variety of products and services. Caesarstone is a leading global company traded on Nasdaq. With Caesarstone’s decision to directly serve the U.K. market, it chose to join Navigation Park which is great news for SEGRO and the local community as it will create a number of new jobs. An advantage for Caesarstone of being based at Navigation Park is its prime location and direct access to the M25/North Circular, making it the ideal location from which to distribute its goods.”

Amir Reske, Managing Director, Caesarstone UK, said:

“Navigation Park is an ideal location for us. After more than a decade of our products being sold successfully in the UK, and a continued growth in market demand from our UK customers, we have decided to invest in this market and directly bring our innovative and quality countertops to our customers in the UK. We were looking for a storage and distribution unit for our unique and leading products and it needed to be situated near the motorway network in order to best service and deliver to our customers. The carbon neutral rating is also an added bonus, allowing us to operate without harming the environment, which is very important to us. We are looking forward to moving into the unit and commencing serving the UK market, directly, starting in January 2017.” acted for Caesarstone in this deal, with Glenny LLP acting for SEGRO.

Opening Times

Tues 18th June 2019 10:00 - 17:00

Awards/VIP Dinner 19:00 - 24:00

Wed 19th June 2019 10:00 - 19:00

Multimodal Mixer 17:00 - 19:00
(Late night opening & happy hour)

Thurs 20th June 2019 10:00 - 15:00


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