18 October 2016

SELP JOINT VENTURE PRICES €500 MILLION 2023 UNSECURED BOND ISSUE

SEGRO plc ('SEGRO'), in its role as venture advisor to the SEGRO European Logistics Partnership ('SELP') joint venture, announces the launch and pricing of a seven year, €500 million (£446 million) unsecured bond issue for SELP. The bonds were priced at 120 basis points above the euro mid swap rate and have an annual coupon of 1.25 per cent.

The proceeds of the issue will principally be used to prepay the majority of SELP's secured bank facilities.

SELP was formed in October 2013 and, at 30 June 2016, had a gross asset value of €2.25 billion. It has a long-term debt rating of Baa2 (stable outlook) by Moody's Investor Service Ltd and BBB+ (stable outlook) by Fitch Ratings Ltd and the bonds are expected to be rated in line with these. BNP Paribas, Morgan Stanley and The Royal Bank of Scotland acted as Joint Lead Managers on the transaction.

As part of the refinancing exercise, SELP has also agreed in principle a €200 million revolving credit facility with BNP Paribas and The Royal Bank of Scotland.

The combined impact of the refinancing exercise is expected to reduce the all-in cost of third party financing in SELP by approximately 110 basis points from 2.7 per cent currently.

Justin Read, Group Finance Director of SEGRO, said: "We are very pleased by the depth and breadth of support for this inaugural SELP bond issue which is testament to the high quality assets and cash flows of the joint venture. The issue allows SELP to finance itself both at a lower cost and more efficiently."

Exchange rate as at 18 October 2016 is €1.12 to £1.

ENDS

For further information, please contact:

SEGRO plc

Harry Stokes (Head of Investor Relations and Research)

+44 (0) 20 7451 9124 / harry.stokes@segro.com

Lindsay Dunford (External Communications Manager)

+44 (0) 20 7451 9117 / lindsay.dunford@segro.com

Richard Sunderland / Claire Turvey (FTI Consulting)

Tel: +44 (0) 20 3727 1000

About SEGRO and SEGRO European Logistics Partnership ('SELP'): 

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages over six million square metres of space valued at £7.4 billion 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 nine other European countries.

SEGRO European Logistics Partnership ('SELP') is a joint venture in which SEGRO owns a 50 per cent interest. It was established in October 2013 and owns over €2 billion of big box warehouses and development land across eight Continental European countries. SEGRO acts as asset, property and development manager for SELP.

For further information see www.SEGRO.com.