Segro, has sold a portfolio of 3 industrial estates to the UK Commercial Property Trust and 2 others to UK Property Fund, both of which are managed by Ignis Asset Management, for a total of £80.2 million.

The UKCPT purchase is:
  • Emerald Park East, Emersons Green, Bristol - a modern industrial estate which currently generates income of £1.71 million per annum from 235,635 sq ft across 17 units, let to tenants including Knorr Bremse Systems, Sungard Availability Services and Smiths News Trading Ltd.  Average unexpired lease length is four years three months to breaks (eight years six months to expiry).
  • Gatwick Gate Industrial Estate, Crawley - A mid 1980's industrial estate which generates income of £1.11 million per annum from 144,944 sq ft of space across nine units, let to tenants including Signet Group Ltd and Cooper Callas Ltd.  Average unexpired lease length is five years to expiry and break.
  • Motor Park, Eastern Road, Portsmouth - This group of car showrooms, representing the principal automotive dealership location in the Portsmouth area, generates income of £1.84 million per annum from 162,661 sq ft of space across ten units, let to tenants including Volkswagen Group UK Ltd, Pentagon Ltd and Affinion International. Average unexpired lease length is 12 years two months to break (twelve years nine months to expiry).
The total consideration is £60.51 million, reflecting a net initial yield of 7.34%. The three sites provide a combined total floor area of 549,413 sq ft and a total income of £4.67 million per annum.

Ignis's UK Property Fund has acquired the Southern Cross Distribution Park at Southampton and conditionally exchanged on the acquisition of Triology at Fareham, with completion expected shortly.

Christopher Hill, Chairman of UKCPT, commented:

"This transaction fits well with our strategy of acquiring good quality assets that, particularly in these uncertain economic times, both complement our existing portfolio and offer strong, defensive income characteristics. This portfolio is also attractive as it offers us the potential to grow value through the application of our disciplined and focussed approach to asset management.

"The new financing facility that we agreed with Barclays last year provides us with comfortable headroom to make acquisitions when we find an attractive opportunity such as this, and we continue to look for transactions to grow and enhance our portfolio further."

UKCPT was represented by GVA and JLL represented SEGRO plc in the transaction.