LONDON (ShareCast) - SEGRO's European Logistics Partnership (SELP) has signed a deal to acquire a portfolio of 'prime' logistics assets and development land in Germany, Poland and France for 472m euro.

The acquisition, which is set to complete in the second quarter of 2014, will add 14 assets to SELP's existing collection. The new assets, the majority of which are located in Germany, cover around 679,000 square metres of lettable space.

The purchase price reflected a net initial yield on the standing investments of 7.1% and an equivalent yield of 7%. The portfolio currently generates €31.6m (£26.3m) of contracted annualised net rental income.

SEGRO's Chief Executive Officer, David Sleath, said: "The off-market acquisition of this significant portfolio, just four months after the creation of SELP, increases the joint venture's position in some of the best logistics markets in Europe by almost 50%.

"The assets deliver an attractive income yield from modern, flexible buildings and strong covenants and their addition to SELP's existing assets will accelerate its investment strategy."

The transaction was made as part of the group's plan to grow the SELP portfolio and create a leading Continental European logistics platform, it added.

SEGRO holds a 50% stake in SELP and acts as asset, property and development manager for the joint venture.

NR

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