Slough: SEGRO disposes of Pegasus Park in Brussels for £66m

SEGRO plc, headquartered in Slough, has today exchanged contracts for the sale of Pegasus Park in Brussels to funds managed by Ares Management for £66.2 million.

The sale proceeds represent a yield to SEGRO of 9%. This takes into account the £0.7m annualised running costs of SEGRO’s office at Pegasus Park which will be closed as a result of this transaction.

Pegasus Park comprises a 81,500 sq m office park, 90% of which was developed between 1999 and 2003, and seven hectares of development land adjacent to Brussels Airport. The asset is the fifth of the six large, non-strategic assets identified for disposal as part of SEGRO’s strategic review in November 2011 to be sold.

Completion of the transaction is expected in the third quarter of 2014. Following the disposal, SEGRO will continue to own and manage assets in Belgium, principally two core logistics assets held in the SEGRO European Logistics Partnership joint venture.

Phil Redding, SEGRO’s chief investment officer, said: “The disposal of Pegasus Park is a further important milestone in the strategic reshaping of our portfolio, reducing our exposure to regional office parks and providing funds to strengthen our balance sheet and build critical mass in our core products.

“In the year to date, we have invested over £200 million in logistics assets in Germany, France, Poland and the UK at an average yield of 7.3%, increasing our focus on more modern, less management-intensive logistics warehouses to drive sustainable, long-term total property returns.”