Storm clouds over Segro

Segro, the industrial landlord with property in the UK and Europe, have reported income down 6.1% at £135.5 million ( 2010: £144.3 million), with pre-tax profit down 56.6% to £64.6 million (2010: £148.9 million).

Having taken over the ailing Brixton two years ago, Segro has been offloading the lower quality properties from the portfolio.  The UK accounts for about 65% of the remaining portfolio value, of which 92% is in London and the South, with 44% of the UK portfolio value in London, predominantly around Park Royal and Heathrow.  A recent disposal of 6 ex Brixton Estates multi-let freehold industrial estates at various locations across London has netted Segro £38.2 million.  The purchaser is the Industrial Property Investment Fund (IPIF), managed by Legal & General Property and the deal includes Brent Crescent, Park Royal and Abbeydale Road, Park Royal as well as properties in Poplar and Haringey