Segro has bought a €42.5m (£28.9m) site in Lyon as part of a major expansion in France.
Until the purchase of the 10 hectares (27.1 acres) plot in Lyon, the company’s activities in France have been almost entirely centred on Paris. Segro now intends to make Lyon its second base in the country.
The site, at Satolas Green Business Park, consists of 50,000 sq m (538,195.5 sq ft) of warehouse and industrial buildings and is located near to Lyon’s airport. The initial yield is 6.7%, and will rise to 7.5% when the remaining vacancy is let, and there is the potential to expand on the site.
Segro bought the property from Longbow and the Apollo Real Estate Fund.
Laurent Horbette, general manager France, said: ‘This is an important acquisition in terms of the group’s development in France. Our goal is to make Lyon our second cluster in France after Paris and to become a major player in the market there.
‘15% of the French portfolio is now in the Lyon region; we plan to open an office there in the near future, with local staff looking at opportunities in the suburban office, light industrial and logistics sectors.’