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Advising on a £345m industrial asset swap

  • Global
  • United Kingdom

    07-10-2021

    Eversheds Sutherland advises SEGRO on its swap deal with Schroders

    Eversheds Sutherland has advised SEGRO plc (SEGRO) on an asset swap deal with Schroders, which sees £345m of industrial and urban warehouse assets change hands.

    A cross-practice and inter-firm team, led by Bruce Dear, advised SEGRO on the swap deal, which saw SEGRO acquire Matrix Park, a 256,000 sq. ft. urban warehouse estate in Park Royal, West London for £140m. The site includes a 1.4 acre development close to existing SEGRO assets in West London.

    The team also advised SEGRO on its disposal of a £205m portfolio of sites to Schroders, consisting of two standalone fully-let industrial assets in Hams Hall, Birmingham, and Brackmills, Northampton, in addition to four urban warehouses near Heathrow Airport, Oakwood, Edmonton and Radlett. As part of the swap deal, Schroders will pay SEGRO a balance of £65m.

    SEGRO is a UK Real Estate Investment Trust, and is a leading owner, manager and developer of modern warehouses and industrial property. It owns or manages 95m sq. ft. of space, valued at £17.1bn serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in seven other European countries.

    The Eversheds Sutherland team project managed the whole deal and gave comprehensive advice throughout the acquisition, including on real estate, construction, planning, real estate litigation, environmental, tax and employment matters.

    Eversheds Sutherland worked alongside two other legal practices who assisted with due diligence support on three of the six SEGRO assets.

    Bruce Dear, Head of London Real Estate, said:

    “The Eversheds Sutherland team and I were delighted to support SEGRO on this highly significant, off-market strategic swap. We worked as one with SEGRO, and a cross-office and inter panel firm due diligence team, to deliver the deal at intense speed. With a value of nearly £0.35bn, this is a signature transaction in one of real estate’s most ebullient markets. We very much look forward to working alongside SEGRO on future milestone deals.”  

    Theresa-Marie Stodell, Partner, Corporate, and Client Partner for SEGRO, also said:

    “This is a big ticket, blue-chip deal for both SEGRO and Schroders. The deal team really pulled together to ensure an expedited conclusion to a complex deal which sees numerous, strategic assets change hands.”

    David Proctor, Managing Director of Group Investment at SEGRO, commented:

    “This off-market transaction has allowed us to acquire a significant multi-let industrial estate in one of our core markets, offering strong rental growth potential as well as a medium to long term redevelopment opportunity. At the same time we have been able to divest a number of relatively small holdings, all of which were ear-marked for disposal in the near to medium term.”

    Eversheds Sutherland has a long-standing relationship with SEGRO, being reappointed to its legal panel in December 2018. The team also advised on SEGRO’s acquisition of the Gateway South logistics park in Coventry, in February 2020, and its £133m acquisition of the Electra Business Park in October 2020

    The team was led by Bruce Dear working closely with a Real Estate team including David Emberson, Partner; Alex Shapland, Principal Associate; Fiona Hammett, Principal Associate; and Emma Shepheard, Senior Associate. The team was supported by Jane Southworth, Partner, Environment Health & Safety; Tom Bray, Partner, Employment; Damian Hyndman, Partner, Real Estate Litigation; Peter Scurlock, Construction Litigation; Charlotte Stodell, Principal Associate, Tax;  Paul Mclean, Principal Associate, Planning; and Jennifer Leah, Principal Associate, Real Estate Litigation.

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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