Segro invests €222m to grow its Dutch logistics portfolio

Segro has acquired three logistics warehouses in the Netherlands for €222 million in cash to strengthen its presence in a key logistics hub for the Dutch domestic market as well as continental Europe, the UK REIT said.

The warehouse in Tilburg which Segro acquired from Abrdn

“These warehouses are in some of the most attractive and supply-constrained industrial and logistics markets in the Netherlands,” said Eelco Ouwerkerk, head of Netherlands, Segro. “The acquisitions are a very positive step forward in the delivery of our plan to build scale in this important region, adding three high-quality asset with reversionary potential and significantly increasing the size of our Dutch portfolio.”

The three assets total over 172,000 sq m of additional space and they are fully leased.

One is a 98,000 sq m modern logistics estate with three units in Eindhoven, acquired from Nuveen. Another is a newly-built logistics warehouse in Heerlen’s De Beitel industrial estate, which was acquired from VolkerWessels & Vestum. The third asset is a logistics warehouses in the Vossenberg industrial estate in Tilburg, which was acquired from Abrdn. The warehouse was built in 2018 and is currently leased to Tesla.

The three assets together generate €10 million of headline rent, which will almost double Segro’s rental income from its Dutch portfolio. The warehouses “also offer a significant amount of reversionary potential, the majority of which is expected to be realised over the next four years, as well as the potential to increase rental values through improvements in the sustainability features of the Tilburg and Eindhoven assets,” Segro said, in line with the group’s commitment to low-carbon growth.

“We have been able to leverage our market-leading operating platform and strong local networks to create these opportunities and profitably deploy some of the capital raised in our recent equity placing,” said Marco Simonetti, managing director continental Europe, Segro. “The investment markets show signs of stabilisation and the supply of new sustainable warehousing remains constrained.”

Segro, a REIT listed on the London Stock Exchange and Euronext Paris, owns or manages 10.4 million sq m of logistics space in the UK and seven other European countries.