Segro finalises acquisition of BAA’s property venture stake
22.06.10
Commercial property developer Segro announced today that it has completed the acquisition of BAA's 50% stake in Airport Property Partnership (APP), a 50 / 50 joint venture with Aviva Investors. Segro also said that it has agreed with APP and Aviva to sell assets from its existing portfolio into APP for a cash consideration of £237m. The sale is expected to completed by the end of June.
On April 27 Segro announced its had agreed to acquire BAA's 50% stake in APP for £111.3m cash. APP is focused on airport-related industrial assets in and around major UK airports, and its portfolio includes 17 direct property assets and three indirect investments. By value, 73% of the assets are located near Heathrow. According to Segro, the acquisition price implies a property valuation of £446.6m on a 100% ownership basis and a net equivalent yield of 7.6%.
Regarding the asset sale to APP, Segro said that the assets include North Feltham Trading Estate, Poyle 14 at Heathrow and the Gatwick International Distribution Centre at Crawley. These assets expand the APP portfolio to £684m from £447m. The price of the selling assets represents a net initial yield of 5.1% and a net equivalent yield of 7.2%.
APP will fund the acquisition through drawing on its committed debt facilities and by approximately £70m of new equity from each partner. As at 31 March 2010, APP had net debt of £229m.
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book heathrow airport hotel or heathrow airport car park at the lowest price, click on these links to two great heathrow airport car parking and heathrow airport hotel price comparison pages.
