Segro PLC signed contracts to sell seven standalone big-box warehouses in the U.K. for £241 million, in line with the assets' book value as at June.

A fund advised by Morgan Stanley Real Estate Investing, acting through a controlled subsidiary in joint venture with Thor Equities Group, is acquiring the portfolio spanning 203,400 square meters of floor space.

The warehouses are in Warth Park, Raunds; DIRFT, Daventry; Rye Park, Hoddesdon; Hams Hall, Coleshill; Grove Park, Leicester; The Duke, Burton-on-Trent; and Magna Park, Lutterworth. The combined vacancy rate is 18.5%, and the unexpired lease term to the earlier of break or expiry is six years.

Segro plans to recycle the proceeds into its existing and future development projects.

The deal is expected to close by end of 2019.