SEGRO vacancy rates fall

SEGRO reported a 13.4 percent reduction in the group vacancy rates in the third quarter, down from 14 percent at the end of June. The industrial property Reit said it had achieved £8.3m of new annualised rental income generated compared with £4.1m in the same period the previous year.

It reduced the vacancy rate in the former Brixton portfolio to 19.4 percent, from 21.5 percent at the end of June and it let the largest vacant building in the portfolio in September on a long lease to a major supermarket chain.

The company said it was capitalising on opportunities to grow profitably and improve the portfolio as well as exploiting opportunities to deliver attractive returns from the existing land bank. Furthermore, it has also further strengthened the development pipeline with nine pre-let projects now signed.

Ian Coull, chief executive, said occupier markets were still challenging and, as expected, takebacks remained high in the third quarter as customers consolidated their space. “Enquiry levels continue to be robust and demand for pre-let developments continues to be encouraging.”