Segro hits £26m new headline rent in post-lockdown demand for space
Warehouse developer Segro has reported £26m new headline rent signed during the last quarter.
The total new headline rent for the nine months to September 30 2021 hit £64m, an increase on the £50m sum from the same period last year.
In a trading update for July 1 to October 19, David Sleath, chief executive, said the company had had an “active and successful third quarter”.
Its vacancy rate dropped further to 3.2 per cent, thanks to a strong post-lockdown demand for space.
The company has acquired more than £260m of land in 2021 so far, including £66m worth in the third quarter.
Recent acquisitions include two plots of land in London bought earlier this month, alongside sites in Italy and Poland.
New headline rents on review and renewal increased more than 13 per cent, including an 18 per cent jump in the UK, on previous passing rent in the nine months to September 30.
The firm had made “significant progress” with a profitable development programme, according to Sleath, and completed projects equivalent to £25m in potential rent.
Sleath added: “We currently have 1 million square meters of space under construction, and during the period have added to the active pipeline and secured further land to extend our bank of future development opportunities.
“We head into the final months of 2021 with confidence in our ability to drive further sustainable growth in rental income, earnings and dividends.”