€450 million US private placement debt issue

The issue consists of three tranches: €150 million at a fixed coupon of 1.35 per cent due 2032, €50 million at a fixed coupon of 1.45 per cent due 2035 and €250 million at a fixed coupon of 1.83 per cent due 2040. This translates to a weighted average coupon of 1.63 per cent and a weighted average maturity of 16.8 years.

In addition, SEGRO has today given notice to holders of the 6.75 per cent Sterling bonds due 2021 and the 7.0 per cent Sterling bonds due 2022 (the “Bonds”) that it intends to redeem in full the outstanding amounts. The combined nominal value of the Bonds was £118 million, and they will be redeemed for £131 million during August and September.

Pro forma for the position as at 30 June 2020, and taking into account associated hedging, the impact of these transactions is to extend SEGRO’s average debt maturity (on a look through basis) to 10.7 years and reduce the average cost of gross debt to 1.6 per cent (including joint ventures at share, excluding commitment fees and amortised costs).

The net proceeds from the new US Private Placement issue, after redeeming the Bonds, will be used for general corporate purposes and the Notes will rank pari passu with SEGRO’s existing unsecured bank, bond and US Private Placement debt.

Soumen Das, Chief Financial Officer of SEGRO, commented:

“The support we have received from our existing and new investors for our third US private placement debt issue is a further endorsement of the strategy we are pursuing at SEGRO, reflected particularly in the long duration and low coupons of the new notes. It will increase SEGRO’s weighted average debt maturity and further improve the natural currency hedge for our euro-denominated assets.”

ABOUT SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT) and listed on the London Stock Exchange in the FTSE 100 index. It is a leading owner, manager and developer of modern warehouses and light industrial property with a portfolio comprising 7.8 million square metres of space (84 million square feet), valued at £12.2 billion as at 31 December 2019. Its assets are positioned strategically at locations in the UK across London and the South-East and Midlands regions, while in Continental Europe it has developments in France, Germany, Italy, Poland, Spain, The Netherlands and the Czech Republic.

For 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive.