SEGRO builds momentum

SEGRO has reported a good level of enquiries and demand for lettings in its key markets building on the momentum in the second half of 2010. The industrial property company said in its interim management statement that occupier markets, however, remained challenging with the level of takebacks continuing to be relatively high across the portfolio. 

The company said its development pipeline continued to grow with demand driven by the limited availability of grade A space and the lack of new space coming onto the market given the curtailment of speculative development in the downturn.
 
It said it had signed an extra six pre-let developments since the end of February including a project to develop a 347,686 sq ft office campus for Alcatel-Lucent at its Vimercate site in Italy. UK occupier demand continued to be resilient in London and the south east with the more challenging economic conditions elsewhere in the country reflected in weaker demand for space.

David Sleath, the new chief executive, said: “Trading remains in line with our expectations, and with SEGRO’s high quality portfolio and focus on operational delivery, the group remains very well positioned to benefit as markets recover.”