UK REIT round-up: Segro signs its largest pre-let deal

Great Portland Estates secures pre-let for London development

UK REIT round-up: Segro signs its largest pre-let deal, Thursday, October 24th: Segro (LON:SGRO) has signed its largest ever pre-let deal in terms of space with Japanese sports brand Asics, the real estate investment trust (REIT) has announced.

Segro, which also operates as an industrial property developer, will build a 72,000-square metre European distribution centre for Asics in Krefeld, Germany, which the sportswear manufacturer will occupy on a 10-year lease. The project is due to be completed in 2015, Segro said today in a statement.

Segro further revealed that the deal with Asics was among the six new pre-let deals the REIT had signed with retailers and postal courier firms during the period July 1 to October 23. These deals brought the total number of developments it had underway to 18, representing £14 million a year of future rental income.

Segro, which has been selling off sites in a bid to buy and develop more modern warehouses near major transport hubs as part of a plan it launched in 2011, today said in a third-quarter update that since July 1 it had sold properties worth £408 million and its vacancy rate rose to 9.1 percent from 8.9 percent at the end of June. Citing an improving occupier market, Segro kept its full-year outlook unchanged.

As of 10:26 BST buy Segro shares at 337.00p.

As of 10:26 BST sell Segro shares at 336.30p.

Great Portland Estates pre-lets office space in London

REIT Great Portland Estates (LON:GPOR), which last week won a planning approval for a former Royal Mail site (UK REIT watch: British Land sells Spanish assets for €144.5 million) today said that its joint venture with BP Pension Fund, through its property nominee Ropemaker Properties, has pre-let 23,608 square foot to law firm Boodle Hatfield at its South London Development site. The law firm will take two ten-year leases paying a total of £1.2 million per annum and will receive 25 months rent free from lease commencement.

Commenting on the transaction, Neil Thompson, Portfolio Director of Great Portland Estates, said: "This second pre-letting results in 58 percent of the office space being let so far. We look forward to welcoming Boodle Hatfield to 240 Blackfriars Road, which will be a high quality, prominent office building on completion in March 2014".

As of 10:21 BST buy Great Portland Estate shares at 597.00p.

As of 10:21 BST sell Great Portland Estate shares at 596.00p.

Workspace sells London residential redevelopment site

REIT Workspace Group (LON:WKP) has signed an agreement with property group Grosvenor Britain & Ireland to sell a residential redevelopment site in Bermondsey, south-east London for £51 million. The REIT today said in a statement that Grosvenor was expected to construct a new commercial building for Workspace at an estimated cost of £11 million, on the land retained by Workspace.

As of 10:17 BST buy Workspace Group shares at 477.30p

As of 10:17 BST sell Workspace Group shares at 475.20p.

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