The company, formerly known as Slough Estates, has bought a 30 ha office and distribution campus in Frankfurt in a €197m (£133m) sale and leaseback transaction with mail order retailer Neckermann.

Around 83% of the income from the 310,000 sq m scheme, which is entirely occupied by the KarstadtQuelle subsidiary, is secured on leases of at least 10 years. The rest of the space is let on shorter leases representing a redevelopment opportunity in the medium term. In the short term Segro said it planned to develop a further 6,000 sq m of business space in the short term.

It is Segro’s second deal with KarstadtQuelle following the €163m (£110m) sale and leaseback of a major logistics portfolio and development landbank from KarstadtQuelle in 2005. Germany is now Segro’s largest market in continental Europe.