With a property portfolio of £5 billion and 50 million sq ft, SEGRO is one of the leading international commercial property landlords. Colliers CRE provide strategic advice to SEGRO across the UK with active instructions in the North West, South West and South East. The Bristol Office have been instrumental in developing the 'Bristolworks' concept whereby a number of estates have been purchased in and around the city. This allows a range of coordinated management and marketing initiatives to take place providing the occupiers with an unrivalled service.
Segro's National UK Markets Director Gareth Osborn talks about the way SEGRO is negotiating the current property market.
Q.There is plenty of doom and gloom being reported on a daily basis - how do you see the market at the moment?
A. My view is that the crisis in the financial market has not fully impacted on the occupier market and that we are likely to suffer a second dip during the latter part of 2008. I fear that the financial sector has significant liabilities that have as yet to manifest themselves, and a further Northern Rock or Bear Stearns situation is not beyond the realms of possibility. However against that back drop the occupier market in the first half of 2008 has remained strong with enquiries continuing to convert and we continue to see pockets of rental growth across our portfolio. The lack of speculative development is insulating the market against a repetition of some of the worst elements of the early 1990's down turn.
We continue to show encouraging letting activity across our National Markets portfolio in Birmingham, Manchester, Bristol, Portsmouth and other locations. The encouraging trend isn't in isolated pockets but is nationwide.
Q.So does this mean that SEGRO are not actively purchasing at the moment?
SEGRO have a strategy of net disinvestment through 2008, following significant disposals in 2006 and 2007. It is our view that opportunities will present themselves during the latter part of 2008 and into 2009 and we will review selectively these investment opportunities at that time. These would have to fit our strict criteria of fitting in with our business plan and show potential for strong rental performance over the coming 5 years.
Q. It's good to hear positive news, why do you think the market is buoyant in these areas?
The buoyancy in the local markets is a reflection of SEGRO's long term investment strategy to locate in the premier business locations throughout the country. We have been able to out perform due to this long term strategy. In the National markets portfolio, by its very nature, we are geographically spread, and as such we are less dependant on the South East market. We have had a very successful first 6 months in 2008, with lettings in line with our record levels achieved in 2007. It has been a difficult 6 months but very rewarding and our agents have had to work very hard to achieve excellent results.
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Natasha Sunderland Head of PR +44 20 7344 6641
Jacqueline Whitaker Associate Director +44 20 7344 6706