SEGRO : Acquisition

29 July 2014

SEGRO BUILDS SCALE IN UK LOGISTICS WITH £49.5 MILLION ACQUISITION

SEGRO plc ("SEGRO" or "the Group") today announces that it has acquired a portfolio of four UK logistics properties from Harbert European Real Estate Fund III, L.P, a fund advised by Harbert Management Corporation (Europe), LLC, for £49.5 million.

The purchase price, to be funded from existing resources, reflects a net initial yield of 6.3 per cent, generating annual net rent of £3.2 million. The portfolio is fully let for an average lease length of 6.2 years to the earlier of break or expiry.

The portfolio comprises four Grade A warehouses totalling 53,100 sq m all constructed since 2001: three big box distribution warehouses located within the UK logistics "golden triangle" in the Midlands and a light industrial warehouse on a business park in Norfolk.

·     Hams Hall Distribution Park, Birmingham: Hams Hall Distribution Park is situated close to junctions with the M42 and M6 motorways and also benefits from a rail freight terminal. SEGRO acquiring two warehouses on the Park: a 16,500 sq m logistics unit built in 2001, let to Exel Europe, a subsidiary of Deutsche Post; and a 14,900 sq m logistics unit let to Beko PLC, built in 2003.

·     Grove Park, Leicestershire: Grove Park is situated close to junctions with the M1 and M69 motorways. We have acquired a 14,600 sq m distribution warehouse, built in 2006, and let to British Gas Holdings Ltd.

·     Gateway 11 Business Park, Norfolk: Gateway 11 Business Park is situated on the outskirts of Norwich, and we are acquiring a 7,100 sq m high-spec warehouse built in 2006 and let to Williams Lea Ltd, a subsidiary of Deutsche Post.

Commenting on the acquisition, SEGRO's Chief Investment Officer, Phil Redding, said:

"This transaction was a great opportunity to acquire four modern UK logistics warehouses in an off-market deal. It meets our strategic objectives of increasing our presence in the UK logistics market through the acquisition of high-quality, income generating assets that offer the potential for growth."

ENDS

For further information, please contact:

SEGRO plc

Harry Stokes (Head of Investor Relations and Research)                        Tel: +44 (0) 20 7451 9124

FTI Consulting

Stephanie Highett / Nick Taylor / Giles Barrie                                        Tel: +44 (0) 20 3727 1000

About SEGRO:

SEGRO is a leading owner, asset manager and developer of modern warehousing and light industrial properties, with £4.1 billion of assets (at 31 December 2013, including joint ventures at share) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland. It also develops and owns warehouses in important distribution markets in the UK, Belgium, the Netherlands and the Czech Republic, and offices in Slough and Milan. The Group serves around 1,250 customers spread across a diverse range of industry sectors. It has 5.3 million square metres of built space under management and a gross passing rent roll of £258 million (SEGRO share).