The 13-acre urban warehouse estate, called Electra Park, is located near Canary Wharf and London City Airport, being bordered by the A12 and A13 main roads connecting it directly to central London, while it is also at a walking distance from underground stations.
It provides 21,200 square metres of lettable space across 10 units of which nine are let, with the final unit currently under offer, generating a topped-up passing rent of £3.4mln, reflecting a low average in-place rent of approximately £14 per square foot.
In the quarter to October 20, the warehouse operator signed contracts worth £15.8mln of new headline rent, while rent roll growth from existing space, net of take-backs was £5.6mln.
The vacancy rate was 5.2%, same at as at the end of June, while customer retention was 88%.
Segro has collected 85% of the total rent billed for the fourth quarter to next January, as well as 96% and 95% of the rent for the second and third quarter respectively.
Net debt at the end of September was £2.7bn.
The firm issued 600,000 new shares to pay 7% of the interim dividend, which totalled 6.9p per share. Earnings per share for 2020 are expected to be based on an average of 1bn shares.
“We expect sector-leading total returns as structural trends continue to drive rental growth enhanced by profits from a high quality development pipeline,” analysts at Liberum noted.
Shares, which are trading on a 29% premium and a 2.3% dividend yield, dipped 1% to 930.4p early on Wednesday.
Published at Segro acquires £133mln London warehouse