Segro Share Discussion Threads

[simon gordon] 18/1/2012 16:53

Looks like it printed a Morning Star on the 16th / 19th / 20th December and a firm bottom could have been put in. When it rallied in October the Cloud resistance was fairly thick and the price was rejected, the future Cloud is getting thinner and maybe when it next rallies it could breakthrough:

[simon gordon] 18/1/2012 16:27

SKY,

With such a chunky yield is SGRO the best property play, taking into account financing and liquidity.

[skyship] 18/1/2012 16:14

Segro lines up £300m sale

18 January 2012 | By Patrick Gower / PropertyWeek

Segro is close to selling £300m of industrial and regional office space, as its £1.6bn disposal of non-core assets kicked into gear, Property Week can reveal.

The industrial REIT is selling portfolios to a Harbert and Canmoor joint venture and fund manager Ignis Asset Management.

The developer, under new chief executive David Sleath, has moved to shed itself of underperforming assets at an unprecedented pace since Sleath announced plans to reshape the company's portfolio in November – and is already a quarter of the way through its sales programme.

US private equity firm Harbert, alongside Canmoor, is understood to have placed under offer a portfolio of Segro's business parks worth more than £200m.

Just last week it emerged that Harbert had agreed a deal to buy the IQ Farnborough business park for approximately £90m.

The latest £200m portfolio comprises four of Segro's best known regional business hubs; Trafford Park, in Manchester; Heywood Distribution Park, near Bury; Kings Norton Business Centre, in south Birmingham; and Meteor Park, in Aston.

Canmoor and Harbert completed a similar deal in 2009, when they teamed up to buy a portfolio of four industrial estates from Segro for £100m, including the Grand Union Estate in Park Royal and Woodside Estate in Dunstable.

Meanwhile, Ignis Asset Management is understood to be close to agreeing a deal to buy a £90m portfolio of assets across the south of England, predominantly around Southampton and Portsmouth.

The portfolio includes the Railway Triangle Industrial Estate, near Portsmouth. It is thought the assets are to be bought on behalf Ignis's UK Commercial Property Trust.

Sleath used an investor day in November to make his mark by saying Segro's performance in Europe and the UK's key markets in West London and Slough had been "diluted" by underperforming assets.

He added that the firm had identified "£640 million of large non-strategic assets, such as pure suburban offices and bespoke manufacturing campuses and £1 billion of other industrial and land holdings which will be recycled over the coming years."

That week, Sleath told Property Week that the company had plans to "look at" bringing third party investors into its treasured Slough Trading Estate, following successes with its Airport Property Partnership joint venture with Aviva Investors.

As Sleath outlined his plans for the £1.6bn sale, Segro, alongside Moorfield, was negotiating with Legal & General Property, Hermes Real Estate and LaSalle Investment Management to buy their £300m UK Logistics Fund.

The deal, which completed just before Christmas, saw Segro and Moorfield acquire 4.35m sq ft across 14 big sheds, to fit with the new strategy.

Jones Lang LaSalle is advising Segro. All parties declined to comment.

[barlick] 13/1/2012 17:37

I2user

Not a good start for The Sunday Times as they include Tesco & Invensys in their buys!!!!

It's all a silly game don't you think?

Barlick

[skyship] 11/1/2012 17:33

4spiel - you refer to their bonds; and actually the price of the bonds (see bondscape.net) is one very interesting indicator that SGRO equity might well be cheap. Still, they need to successfully consolidate this 200p level before I might be tempted.

[barlick] 11/1/2012 17:24

Looks too cheap to me & a good dividend so I am in. That's the kind of combination I like!!

[4spiel] 01/1/2012 19:54

Quite alot of debt in bond market. In the crash these bonds were dirt cheap -they have been bought up because speculators have bought what investors would not have bought because there was only the higher risk left to get any yield. Any trouble and they will drop like a brick. So what is the equity really if high vacancy levels increase and the dividend wanes. Don't like these.

[l2user] 01/1/2012 13:16

Sunday newspaper share tips round-up
By THIS IS MONEY REPORTER
Last updated at 12:06 PM on 1st January

[skyship] 16/12/2011 14:13

Don't know how to call this -

either:

# the drop through 200p has broken a psychological support level which could quickly turn the fall into a rout

or:

# the fact that we're on the bottom of the trend channel and approaching the 61.8% FIB level will provide support

[skyship] 14/12/2011 15:25

Well, here we are back at the X-roads again. 200p - To BUY or not to BUY - that is the Question etc.etc.etc.

Obviously cheap; but just as obviously could well go another 10% cheaper; perhaps more if we're headed back to 4850 again.

Only 7% CASH at the moment - so will chicken out again...

[jonwig] 27/11/2011 14:45

Skyship - I suppose (haven't checked) that the bonds will be wholly secured - ie. holders can bring the company into liquidation to ensure redemption.

That said, I agree about the ords. It's Eurozone jitters, I suppose. A EZ breakup which split north-south would (after the first shock) be very positive for holders of property in Germany, Benelux, France maybe. But the market has the first shock in mind!

[skyship] 27/11/2011 11:54

A reality check here shows that the 6.25% Sept'15 bond stands at 109 for a yield to maturity of 3.7%.

The ords stand @ 207p yielding 7.0% on a 14.5p dividend (a slightly raised Interim of 4.9p and a maintained Final of 9.6p). The NAV discount is 40%+ on both EPRA & UK scale. The LTV is c.47% and the debt is long-dated.

The sector is unloved.

All stacks up for a great contrarian buy...

[losos] 22/11/2011 10:15

Recommended in the IC this week (For what that's worth!)

Decent yield and they seem to be getting their 'voids' under control, but a long hard slog for the next five years before the share price does anything worthwhile, one for income seekers I think.

[nwb] 26/10/2011 18:30

This is a very quiet board - at the current price it looks like decent value.

[deanforester] 06/10/2011 17:16

Added 30% to my holding today. Meant to do it on Tuesday, but forgot. Never mind, as a yield of 6.3% is still worth having.

[dnevets] 19/4/2011 09:58

Wed 30 Mar 2011

LONDON (SHARECAST) - After five "Golden Years" between 2005-10, property company Segro is now facing a period of intensive asset management challenges, according to Credit Suisse.

"We envisage Segro's efforts to reduce its high vacancy level (12% at group level) will increasingly prompt leasing deals that undermine its own estimated rental value," said analyst Steve Bramley-Jackson.

The broker also has some concerns with regional and asset allocation. A 'neutral' rating is kept, but the target price is upped to 344p, from 318p.

[nellie1973] 14/12/2010 11:07

Broker upgrade

[scburbs] 15/11/2010 07:51

Lettings progress as expected. Also interesting to see the development pipeline starting to progress nicely.

[selkirk69] 01/11/2010 14:22

Hopefully this will help use to break through the 300 barrier, we've been stuck there for a while now.

[scburbs] 01/11/2010 11:38

"Segro has signed expansion deals totalling nearly 30,000 sq ft with three businesses at its flagship Slough Trading Estate.

...

David Drummond, leasing manager at Slough Trading Estate said: "These expansions are a key indicator of the positive sentiment we're seeing coming back to the market."

Source EGi

[scburbs] 18/10/2010 16:04

More leasing traction and the Verdus transaction has completed (worth 2.1% off the Brixton portfolio's vacancy rate). IMS due in the next month and sentiment seems to have improved slightly.

"More warehouse space for JD Sports
Published: 24 September 2010 10:14 AM

Sports retailer, JD Sports has taken an additional 131,600 sq ft unit on a two-year lease at SEGRO's Heywood Distribution Park in Rochdale."



"SEGRO, Europe's leading provider of flexible business space, has today announced it has completed a lease on its 233,000 sq ft Verdus building, at Greenford Park, West London to a major supermarket chain.

The building accounted for 2.1 percentage points of the Brixton portfolio vacancy rate (0.4 percentage points of the Group vacancy rate) which stood at 21.5 percent as at 30 June 2010 (Group: 14.0 percent).

Ian Coull, SEGRO's Chief Executive said, "Verdus is one of our largest vacant buildings and this lease represents another positive step forward with the leasing of the Brixton portfolio. This shows SEGRO is continuing to capitalise on the strong occupier demand for prime industrial space particularly in West London, which continues to be an important market for us."

The Verdus building, in Greenford Park, West London, forms part of the portfolio SEGRO acquired from Brixton and is one of SEGRO's largest buildings. It is located within 2 miles of the A40, providing occupiers with quick access to both the M25 and Central London."



"Since announcing its half year results in August, SEGRO can confirm that it has secured eight pre-let deals; five in the UK and three in Europe totaling almost 44,000 sq m.

In the UK, two of the agreements are on the Slough Trading Estate. One has taken 3,390 sq m to provide a warehouse facility in the south east, and Ragus Sugars, an independent importer and manufacturer of sugar products, is expanding its operations and has taken a further 3,273 sq m. The further three lettings are in the South East of England and are subject to planning consent.

In Europe the three pre-lets are in the Czech Republic, Poland and France. Adler, a clothing and accessories company has taken 5,200 sq m in Ostrava in the Czech Republic and HL Displays has taken a 7,600 sq m lease in Gliwice Poland. This follows on from the successful letting of 24,000 sq m to Kaufland in Gliwice in July. In Paris SEGRO has also signed a pre-let in Gonesse for 27,100 sq m."

[topvest] 26/8/2010 18:29

Results didn't go down that well then!

[2ngh] 28/6/2010 12:49

Very surprised this ins't substantially higher...

Think accumulation is happening around this price before a big spike north.

[2ngh] 28/6/2010 09:29

Here we go!!