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Eversheds advises SEGRO on exclusive partnership with Roxhill

  • Global
  • United Kingdom

    02-03-2016

    Eversheds has advised property investment and development company SEGRO plc on its partnership with Roxhill Development Group on a portfolio of big box logistics warehouse development sites in the South East and Midlands.

    The deal will add significant scale - 10 million sq ft over 10 years - to SEGRO’s existing UK big box logistics portfolio.

    SEGRO has partnered with Roxhill previously, having established a successful joint venture in 2013 at the Rugby Gateway site. Roxhill will act as development manager to the new partnership and will work exclusively with SEGRO once Roxhill has completed a number of existing development projects with other partners.

    The sites subject to the transaction are at various stages of the planning process and the terms of the transaction allow SEGRO to phase its investment. An initial investment, the majority of which is deferred, will be payable in consideration for a 50 per cent share of Roxhill's interests in options over the sites. The deferred payment is due on each site once planning permission is granted, at which point SEGRO has the right to buy Roxhill's remaining interests in the sites as well as the management platform, RMRL.

    Should all the sites become fully developed the total potential capital expenditure, which includes land and infrastructure, is estimated to be around £800 million over a 10 year period.

    The Eversheds team was led by corporate partner Richard Lewis and included principal associate Niki Evans, real estate partner David Emberson, planning principal associate Roddy Macdonald, and tax partner Sebastian Daly and senior associate Colin Askew.

    Commenting on the transaction, Richard Lewis said:

    “We are delighted to have advised SEGRO on another successful transaction. This deal represents a significant step forward for SEGRO in achieving its ambitions in the UK big box logistics market.”

    Eversheds has advised SEGRO on a number of transactions in recent years, including the sale of its portfolio of six logistics properties and regional warehouse to Logicor for £153m in 2014, and the sale of its IQ Winnersh development for £245m in 2013.

     

    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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