LONDON (ShareCast) - European industrial property developer SEGRO has acquired Zeran Park II in Warsaw for 43.2m euro (36.9m pounds) from AREA Property Partners and Apollo-Rida Poland.

The site comprises modern warehouses used for urban distribution and a small office totalling 49,900 sq m of lettable space, approximately 10 km from Warsaw city centre.

The assets are approximately 85 per cent occupied with a weighted average unexpired lease term of 3.5 years and currently generate approximately €3.3m (£2.8m) of annualised rental income.

The purchase price represents a net initial yield of 7.5% and an equivalent yield of 8.2%.

In September last year the group purchased the Ozarow Business Centre (subsequently renamed SEGRO Business Park Warsaw), 36,600 sq m estate comprises four modern warehouses, for €14.1m (£12.1m).

David Sleath, SEGRO's Chief Executive, said: "These two recent acquisitions significantly strengthen SEGRO's market position in Warsaw, Poland's largest city and a major economic centre.

"This is in line with our strategic objective to strengthen our presence in and around selected major conurbations by recycling capital out of non-core assets and taking advantage of attractive acquisition and development opportunities.

"Both parks are ideally positioned to accommodate demand for urban logistics space from businesses, such as retailers, servicing customers in the city centre and complement our existing portfolio of prime 'big box' logistics assets in Poland.

"These transactions increase our critical mass in the Warsaw region to almost 140,000 sq m."

NR

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