Segro agrees Brixton offer

<!--StartFragment--> INDUSTRIAL landlord Segro said yesterday it agreed an offer&nbsp;for warehouse specialist Brixton in a deal worth &pound;109.4m.<br /><br />The planned combination will give Segro &ndash; formerly known as Slough Estates &ndash; a property portfolio worth &pound;5.5bn based on May valuations.<br /><br />Segro is accompanying the Brixton deal with a &pound;250m share issue, half of which will come via a placing to shareholders at 210p a share.<br /><br />Segro chief executive Ian Coull yesterday told City A.M. : &ldquo;We were able to buy at the bottom of the market. Due to the downturn some property companies couldn&rsquo;t recapitalise and have found themselves in serious trouble. Brixton was one of these.&rdquo;<br /><br />He said: &ldquo;This is a terrific deal for our shareholders and a good deal for Brixton&rsquo;s shareholders.&rdquo;<br /><br />Segro also said that after acquiring Brixton in an all-share deal it expected to generate &pound;12m of synergies a year from the start of 2010. Due to the group&rsquo;s synergies Segro expects to take over from Brixton&rsquo;s management in August.<br /><br />Coull added: &ldquo;I don&rsquo;t believe that we are at the bottom of the cycle, but we&rsquo;re pretty close in terms of yields. And in six to nine months property values will stabilise and move upwards. This is good timing.&rdquo;<br /><br />The group said it expects some job cuts in relocating Brixton staff to Slough head offices, but says it doesn&rsquo;t expect &ldquo;huge numbers.&rdquo;<br /><br /><strong>HOW SEGRO SNAPPED UP BRIXTON<br /></strong><br /><strong>4 March 2009<br /></strong>Segro announces a &pound;500m rights issue to boost its fire-power and bolster its balance sheet.<br /><br /><strong>22 May<br /></strong>Segro announces a preliminary approach for Brixton<br /><br /><strong>22 June<br /></strong>Segro announces it has reached an agreement on financial terms with Brixton. It proposes an offer of one Brixton share for every 1.75 Segro.<br /><br /><strong>9 July<br /></strong>Announces it has agreed an offer for rival Brixton that includes a &pound;250m capital hike and a possible &pound;325m buyback of Brixton bonds.<br /><br /><strong>28 July<br /></strong>Segro general meeting, shareholders must approve the share raising and also the acquisition on this date.<br /><br /><strong>25 August<br /></strong>Segro says Brixton will de-list its shares on this date. <!--EndFragment-->