SEGRO has acquired BAA’s 50% share of the Airport Property Partnership.
SEGRO has exchanged conditional contracts for the acquisition of BAAs 50% interest in the Airport Property Partnership (APP) for £111.3m cash. APP is a 50/50 joint venture with Aviva Investors, focused on airport-related industrial assets in and around major UK airports, 73% of the holdings are around Heathrow.
SEGRO will become the asset manager of the APP portfolio whilst Aviva Investors will retain its role as fund manager.
In addition, SEGRO and Aviva Investors are in discussions to expand the joint venture significantly through the proposed purchase by APP of approximately £240m of complementary assets within SEGROs existing portfolio. In aggregate the two transactions are expected to generate net cash proceeds of approximately £60m for SEGRO.
Commenting on the transaction, Ian Coull, Chief Executive of SEGRO said: The APP portfolio comprises high quality assets, reinforces SEGROs position at Heathrow, one of our core locations in the UK and offers significant upside potential. Further, the opportunity to expand the APP joint venture through the injection of existing SEGRO assets meets one of the Groups strategic objectives to leverage its property management skills across a broader asset base. We look forward to working with Aviva Investors to add value to the portfolio in the years ahead.