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| Segro sells Great Western Industrial Park Segro, Europe's leading provider of flexible business space, has announced the sale of Great Western Industrial Park in Southall, West London to Universities Superannuation Scheme Ltd (USS) for a total consideration of £110.4m, representing a net initial yield of 6.9%, which rises to over 7% once outstanding reviews are settled. Great Western Industrial Park covers 773,379 sq ft and comprises 27 production and warehouse units. Its tenants include food and beverage companies Noon Products Ltd and Delifrance (UK) Ltd. The weighted average lease length for the sale of the estate is 10.2 years to earliest termination. As part of the sale, SEGRO has pre-sold a future development of 36,575 sq ft at Western Point which forms part of the industrial park. Segro has entered into an agreement with GeoPost UK Ltd to develop a cross docking warehouse on a 20 year lease at an annual rent of £621,775. The sale price of Great Western Industrial Park represents a 10% premium over the book value at June 2009 after allowing for the capital expenditure to be incurred in connection with the GeoPost pre-let, and also a 34% increase over the implied valuation at the time of the offer to acquire Brixton. write your comments about the article :: © 2009 Construction News :: home page |