Industrial property investor Segro PLC on Tuesday said it will buy six assets of Tritax EuroBox PLC from its soon-to-be-owner, private equity firm Brookfield Asset Management Ltd.
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. This valued Tritax EuroBox at an enterprise value of £1.10 billion.
Segro said it signed a non-binding heads of terms and binding exclusivity agreement with Brookfield Property Group Ltd, an affiliate of Brookfield, to buy some companies within the German and Dutch property portfolio of Tritax EuroBox for €470 million.
Segro said the assets it plans to buy currently generate about €23 million of headline rent. Four of the assets are in Germany, while the other two are in the Netherlands. They offer a total size of around 370,000 square metres of fully-leased and modern logistics space ‘and complement Segro’s existing portfolio in Germany and 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 €1.51 billion, including some costs and subject to customary adjustments.
Tritax EuroBox’s board reiterated its unanimous recommendation for shareholders to vote in favour of its takeover by Brookfield, with the meeting set for next week Wednesday.
Tritax EuroBox noted that Segro’s own takeover offer will lapse this Friday, ceasing a current competitive situation between Segro and Brookfield.
Segro shares were up 0.1% at 779.40 pence each on Tuesday morning in London, while Tritax EuroBox shares were down 2.3% to 68.40p each.
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