Source - SMW
Segro said occupational demand for modern, well-located warehouse space has continued to be strong over the past two months, since UK's non-binding Brexit referendum result. It also announced a £340m placing.

"Although it is too early to assess the longer term impact of the UK vote to leave the EU, it has not yet had a material impact on our operating business," said CEO David Sleath in a statement.

"Our vacancy rate remains low and we have seen further net absorption of existing space.

"In addition, since 30 June 2016, we have signed unconditional pre-let agreements for 188,600 sq m of space across Europe which will generate £6 million of new annualised headline rent and the pipeline of near-term opportunities remains encouraging.

"There has been limited investment transactional activity in the warehouse sector in what is traditionally a quiet period, although we have exchanged contracts to dispose of an industrial estate near Heathrow for a small premium to book value at 30 June 2016 to an international investor, demonstrating continued investment demand for the asset class."


In addition, Segro unveiled a placing of up to 74.8m new shares to raise about £340m to fund an identified pipeline of predominantly pre-let development opportunities.

To this end, Segro said it had identified projects requiring capital expenditure of approximately £456 million over the next two years. 

Of this amount, £199m has already been committed to complete the current development pipeline and a further £140 million is associated with a potential pipeline of projects where either a pre-let has been agreed subject to planning or is in advanced negotiations. 

There are further speculative, urban warehouse development projects totaling approximately £117 million, of which management expects most to commence within the next 6 to 12 months subject to continuing favourable occupier markets.