Segro sells £275m warehouse portfolio as it eyes ‘new investment opportunities’

The London-listed warehouse giant Segro has sold a group of retail spaces worth more than €327m (£275m) as it eyes “new investment opportunities”.

The sale includes four warehouses, two located in Milan and two in Rome, which Segro said it had developed for “some of our largest clients” to support their expansion plans.

The warehouses have a total floor space of 338,745 sq m and are fully leased to three different customers active in the online and traditional retail sectors, generating a passing rent of €19m and an average WAULT of 10.5 years.

Luca Sorbara, co-head of Italy at Segro, said: “We developed and delivered these modern, highly sustainable warehouses for some of our largest customers in Italy to support their expansion plans.

“This disposal has enabled us to divest some assets with long-leases and limited asset management potential, allowing us to recycle capital into other attractive development and investment opportunities.”

In April Segro revealed that it is aiming to grow its passing rents by more than 50 per cent during the next three years to achieve its goal of an average yield on cost of between seven and eight per cent.

In the first three months of 2024 the group signed £29m in new rent as it hiked prices and signed £17m in new pre-let developments.

It also invested £99m in new developments, with £600m total expected to be spent throughout the year.

This latest sale means Segro has now sold more than £430m in property so far this year at prices above December’s reported book value.