StockMarketWire.com - Property investor Segro said it had exchanged contracts to sell a portfolio of UK big box warehouses for £241m to a fund (Thor) advised by Morgan Stanley Real Estate Investing.

The price was in line with the assets' June 2019 book value and the transaction was expected to complete by the end of the year.

The portfolio comprised seven warehouses with a total floor space of 203,400 square metres.

Chief investment officer Phil Redding said the assets had generated a combined internal rate of return since acquisition of around 11%.

'The proceeds will be recycled into our existing and future development programme, including UK big box logistics parks developed using the Roxhill platform which we acquired last year,' Redding added.

CBRE acted for Morgan Stanley and Thor on the transaction.

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