Segro posts a rise in its property value as it eyes future industrial development

City A.M. Reporter
INDUSTRIAL landlord Segro posted a slight rise in the value of its properties yesterday and aims to restart new developments amid returning interest from potential tenants.

Segro, which has about two-thirds of its properties in the UK and the rest across continental Europe, said its portfolio value grew 1.4 per cent in the first half, with a 2.5 per cent rise in the UK offsetting a 1.4 per cent drop on the continent.

The group said its adjusted net asset value per share edged up to 366p at the end of June 2010, from 362p at the end of December 2009, while net rental income rose 11.3 per cent to £144.3m from a year ago.

“We’ve seen capital values stabilising on average across continental Europe, but within that Spain and Hungary still struggle,” Segro chief executive Ian Coull said.
Segro said it is receiving interest from prospective tenants, such as data centres, manufacturers, and companies seeking alternative office space, prompting it to restart its development schemes.

The new developments, to be built on Segro’s existing landbank, is expected to add 155,000 square metres of space and involve £145m of capital expenditure, to be paid for with existing credit facilities, the company said.

It agreed to £271m of new and extended bank facilities in the first half.