LONDON (ShareCast) - Segro has bought out its Belgian joint venture partner following its announcement earlier in the year that it had formed a one billion euro logistics property joint venture in Continental Europe.

The group bought KBC Real Estate's 50% stake for €33.2m (£28.1m) at a net initial yield of 7.7%) and now has full ownership of two logistics assets totalling 92,000 sq m of built space; one at Bornem for 30,000 sq m, and two distributors of medical supplies.

Segro plans to inject these assets into its new joint venture, SEGRO European Logistics Partnership (SELP).

The company also acquired KBC's 50% stake in two small land holdings at Zaventum and Kortenberg, which will not be injected into the SELP vehicle. It said it would actively seek to dispose of this land and had already exchanged contracts to sell over a third of it.

Phil Redding, Segro's Chief Investment Officer, said: "The buy-out of our joint venture partner in Belgium is an important step in the process of placing our core Continental European logistics assets into a larger logistics platform.

"By acquiring KBC's interests in these developments, we are reducing the number of joint venture partners in Continental Europe and maximising the potential benefits of creating scale in logistics. These are attractive logistics assets situated in a prime location and they will be a strong addition to SELP."

NR

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