Segro, a British warehousing firm, announced the acquisition of six logistics properties owned by Tritax EuroBox in Germany and the Netherlands for EUR 470 million. This deal is part of an agreement with Brookfield Asset Management, which is in the process of acquiring Tritax EuroBox for GBP 1.1 billion. The assets being sold to Segro generate around EUR 23 million in rent and comprise 370,000 square meters of logistics space, complementing Segro's existing portfolio. The transaction comes after Brookfield outbid Segro in the race to acquire Tritax EuroBox.
British warehousing firm Segro PLC recently announced that it will acquire six logistics properties owned by Tritax EuroBox PLC in Germany and the Netherlands for EUR 470 million (USD 499.1 million). This deal is part of an agreement with Brookfield Asset Management Ltd., which is in the process of acquiring Tritax EuroBox in a GBP 1.1 billion (USD 1.41 billion) deal, including debt.
Tritax EuroBox is a London-based investor in logistics properties across Europe. Back in October, Tritax EuroBox picked Brookfield's takeover offer over a competing bid from Segro. The non-binding agreement between Segro and Brookfield's affiliate is conditional on the completion of Brookfield's takeover of Tritax EuroBox. The six assets being sold to Segro generate around EUR 23 million in headline rent and comprise a total of 370,000 square meters of fully-leased and modern logistics space, complementing Segro's existing portfolio in Germany and the Netherlands. Four of the assets are in Germany, while the other two are in the Netherlands.
Tritax EuroBox noted that the planned acquisition of its assets by Segro is equivalent to around 31% of the gross value of its property portfolio of EUR 1.51 billion, including some costs and subject to customary adjustments. British-listed commercial real estate companies have witnessed a flurry of deals this year including the USD 1.2 billion purchase of UK Commercial Property by Tritax Big Box, and LondonMetric's deal for LXI.
The European logistics sector, including warehouses, has been a bright spot in the struggling commercial real estate market, driven by the boom in e-commerce and the increasing demand for more space.
Segro's acquisition of six logistics properties from Tritax EuroBox highlights the continued growth and consolidation within the European logistics sector, driven by strong e-commerce demand. This move strengthens Segro's presence in Germany and the Netherlands, contributing to its expanding portfolio. The deal also underscores the ongoing trend of British real estate firms making strategic acquisitions amid a challenging commercial property market. As the sector adapts to evolving market conditions, logistics and warehouse assets remain a key area of focus for investors.
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