Segro To Complete Buy Of 50% Airport Property Partnership Stake

Segro PLC (SGRO.LN), a provider of flexible business space, said Tuesday it will complete the acquisition of BAA's 50% interest in the Airport Property Partnership, the joint venture with Aviva Investors, later Tuesday.

MAIN FACTS:

-Segro also announces it has agreed with APP and Aviva Investors to sell assets from its existing portfolio into APP for a cash consideration of GBP237 million.

-The assets being sold to APP include North Feltham Trading Estate, Poyle 14 at Heathrow and the Gatwick International Distribution Centre at Crawley.

-These assets will enlarge the APP portfolio from GBP447 million to GBP684 million.

-The price of the assets being sold to APP represents a net initial yield of 5.1% and a net equivalent yield of 7.2%: the weighted average remaining lease length is approximately 3.8 years (to break or expiry) and the vacancy rate on the assets being sold is 16.5%.

-APP will fund the acquisition through drawing on its committed debt facilities and by approximately GBP70 million of new equity from each partner.

-The transaction is expected to complete before the end of June.

-Shares closed Monday at 270.7 pence.

-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [e-mail]