The industrial REIT agreed the deal with Mannesmann Plastics Machinery (MPM) on three sites in Munich, Nuremberg and Hanover. The value of the Munich site was around two thirds of the total portfolio.
The leaseback is for a minimum of 15 years and was done on a 7.1% initial yield.
The Munich site comprises 130,649 sq m (1.41m sq ft) of logistics space and 23,488 sq m (252,831 sq ft) of offices on 24.1 ha (60 acres) of land.
Segro said it would be able to generate extra returns by building out parts of the site for future occupation by MPM.
“Munich is a market that we have been interested in for some time now, the local economy is moving from recovery to strength and this is an opportunity to enter that market in a way which directly fits with our strategy,” said Dr Udo Titz, Segro’s general manager in Germany.