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Segro finalises APP purchase and sells assets

INDUSTRIAL landlord Segro completed its purchase of BAA’s 50 per cent stake in the Airport Property Partnership (APP) yesterday, by selling £237m of its own assets to the venture.

The sale means the APP portfolio of UK airport real estate has grown to £684m, the biggest investor in the sector.

Segro agreed to buy into the partnership with Aviva for £111.3m in April, and has now transferred assets at Heathrow, Gatwick and central London.

The price of the assets sold to APP represents a 5.1 per cent net initial yield.

“Through these two transactions, Segro has significantly strengthened its Heathrow portfolio, one of our core locations... and generated net disposal proceeds for the group,” said Segro chief executive Ian Coull.