SEGRO swaps hotels for Northampton shed

SEGRO has acquired a 210,000 sq ft distribution warehouse in Northampton in exchange for two recently developed Premier Inn hotels in Uxbridge and Edmonton.

Assets on both sides of the deal were valued at £20.5m, reflecting a net initial yield of 5.5% from the warehouse and 4.7% from the two hotels.

The warehouse is fully let to Yusen Logistics and is used to fulfil a distribution contract with Samsung.

Located in Northampton’s Grange Park, the property was built in 2000 and the lease has nine years to expiry.

The hotels, let to Premier Inn, are in roadside locations at the edge of two recently completed SEGRO developments in Uxbridge and Enfield.

Premier Inn Uxbridge was completed in December 2015 while Premier Inn Edmonton was completed in November 2014.

Phil Redding, chief investment officer at SEGRO, said: “The acquisition of a big box warehouse in exchange for two hotels is in line with SEGRO’s strategy of building scale in its UK big box portfolio while also crystallising gains we have generated from the development of higher-value use assets on industrial land.”

Related Articles

Readers' comments (1)

Have your say

Sign in to make a comment on this story.

Sign In

Text size

Desktop Site | Mobile Site