Segro has completed a €113m (£81m) purchase-and-leaseback in Germany, bringing its portfolio in the country up to over 10m sq ft.
The listed property company has agreed a deal with Mannesman Plastics Machinery on three industrial sites in Munich, Nuremberg and Hanover. The leaseback is for 15 years and the transaction represents a net initialyield of 7.1%. The value of the Munich site, which has 1.4m sq ft of logistics space on around 60 acres, is approximately two thirds of the portfolio and marks Segro’s first move into the Munich market.
Segro may be able to generate additional returns on the site by building out parts for future occupation by MPM.
The site at Hanover comprises just over 300,000 sq ft of logistics space on 18 acres and Nuremberg comprises more than 350,000 sq ft on 12.6 acres.
Dr Udo Titz, general manager of Segro Germany, said: ‘Munich is a market that we have been interested in for some time now, the local economy is moving from recovery to strength and this is an opportunity to enter that market in a way which directly fits with our strategy.’
Walter Hens, Segro’s group business development director, said: ‘This transaction gives us geographic coverage in three important German cities. It continues our strategy of sale and leasebacks of sites with long-term development potential, building long-term customer relationships on a Pan-European basis.
‘We are already seeing the benefits of similar deals we have done with the KarstadtQuelle group in Germany and with Antalis in several European Countries.’