SEGRO has acquired the 50 per cent interest in the Airport Property Partnership joint venture (‘APP’) it did not already own for £365 million from Aviva Investors.
APP contains 21 direct property assets, valued at £1,097 million and totalling 350,000 sqm, 87% of which (by value) are located at Heathrow Airport, including the majority of the airport’s airside cargo facilities. The portfolio is over 90% occupied and includes one development project which is underway and is expected to complete in 2017.
SEGRO acquired its stake in APP in June 2010 and acted as asset manager for the joint venture, with Aviva Investors acting as fund manager.
Commenting on the acquisition, SEGRO’s Chief Executive Officer, David Sleath, said: “The strong working relationship between the teams at SEGRO and Aviva Investors has enabled the APP portfolio to deliver excellent performance over the last five years and we appreciate Aviva’s contribution to making APP such a successful partnership.
“We believe now is the right time to take full control and ownership over APP in which we see a number of opportunities to realise further value from its unique portfolio in the short and long term. We look forward to pursuing our development plans, taking advantage of strong occupier demand for facilities around Heathrow from customers needing rapid access both to the airport and to Central London.
“Our Heathrow portfolio is one of the jewels in our crown and we are delighted to be able to add scale in this supply-constrained market.”