LONDON (ShareCast) - FTSE 250 group Segro has completed the 75m-pound sale of West Cross Industrial Park to Legal & General Property.

The site is a 46,000 square-metre mixed use park in Brentford, West London, and comprises a mix of industrial assets, offices, leisure facilities and a retail warehouse.

The sale price represents a net initial yield of 5.4%, or 6.8% including the benefit of top-ups in relation to lease incentives. The net sale proceeds, after the deduction of top-ups, are 10.2% above the June 30th 2013 book value and 5.4% above the December 31st 2012 value. At the end of June the Park had a vacancy rate of 7.4%.

Phil Redding, Segro's Chief Investment Officer, said: "We are pleased to have made further progress with our strategic portfolio reshaping programme. This disposal is consistent with our strategy of focusing our portfolio on more modern and generic warehouse properties in our key markets."

The company said it has now completed around £545m of disposals since the start of the year, slightly ahead of the £300-500m target it initially set.

Redding said: "As stated at the time of our half-year results announcement in July, with occupier and investment market conditions generally expected to improve and with our pro-forma loan-to-value much reduced, we are flexing the pace of disposals to reflect both value and the availability of reinvestment opportunities across the portfolio."

NR

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