SEGRO Plc bought a 210,000-square-foot big box distribution warehouse in Northampton, U.K., from an undisclosed buyer through an asset swap.
The warehouse in Grange Park was acquired for £20.5 million, at a net initial yield of 5.5%. In exchange for this acquisition, the group sold two newly developed Premier Inn hotels in Uxbridge and Edmonton, London, to the buyer for a price of £20.5 million, representing a net initial yield of 4.7%. The sale price of the hotels was aligned with a valuation completed in June this year.
The warehouse is fully let to Yusen Logistics, a global third-party logistics provider, with nine years to its lease expiration.
The deal was executed as part of SEGRO's strategy of owning a portfolio of well specified and located modern big box and urban warehouses, according to a company release.