SEGRO £365 million acquisition of Airport Property Partnership

Overview:

• SEGRO has acquired the 50% of the Airport Property Partnership (APP) joint venture that it did not already own for £365 million from Aviva Investors.
• The price was made up of £216 million in cash and £149 million in assets.
• APP holds 21 assets with 350,000 square metres of space, valued at £1.097 billion, located at Heathrow Airport.
• The assets acquired by Aviva as part of the deal include four London industrial assets and a manufacturing facility in Portsmouth.
• To fund the acquisition SEGRO has undertaken a £573 million rights issue.
• Bank of America Merrill Lynch and UBS acted as joint sponsors, joint global coordinators and joint bookrunners and HSBC, Barclays Bank and BNP Paribas acted as co-bookrunners.
• The proceeds will be used in part to finance the acquisition and in part to fund future developments.

Sam Duke - Editor