LONDON (ShareCast) - Property investment and development company Segro announced on Monday the sale of its IQ Winnersh development in the UK and Neckermann site in Frankfurt.

The group is selling its IQ Winnersh for £245.1m in cash to a joint venture between Oaktree Capital Mangement LP and Patrizia AG.

The development is an 118,200sq m mixed use suburban office and light industrial park near Reading.

The sale price represents a net initial yield of 5.8%, or 7.4% including the benefit of rental guarantees and top-ups in relation to lease incentives.

Its Neckermann site is being sold for €46m in cash to a consortium of private investors.

The site is a 309,000 sq m bespoke office and distribution facility formerly occupied by Neckermann, a mail order company, which filed for insolvency in July 2012 and fully vacated the site in January 2013.

Sale proceeds are about €4.3m below the December 2012 book value.

Segro incurred an operating loss at the site of approximately €1.0m in the six months to June 30th due to the impact of vacant property costs.

"The disposal of the Neckermann site, one of our three remaining large non-strategic assets, is an important step forward for us," said Chief Investment Officer, Phil Redding.

"Given the large and bespoke nature of this asset, the age of the buildings and planning constraints on the site, we are pleased to be able to move on so quickly after Neckermann's exit. Our local team will now be able to devote their energies in Germany to developing our core business."

RD

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