INDUSTRY NEWS

Segro tipped to buy Heathrow offices

Property development company Segro is the most likely candidate to purchase a £250 million share in the Airport Property Partnership, which owns a series of warehouses and office space around London’s Heathrow airport. 

The APP is a joint venture by airport authority BAA and fund manager Aviva. BAA is currently conducting a sell-off of non-core assets, and it is understood that £250 million would constitute a half stake in the company.

Segro has shown an interest in the APP for two years now. At the height of the property market in 2007 the portfolio was worth around £1.2 billion. Between the credit crunch and another sell-off of properties in March 2008, the group now owns assets totalling half a billion pounds. Segro recently also acquired rival REIT Brixton, which operated around Heathrow. The APP bid can be seen as a strategy to strengthen its presence in the area.

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