Industrial property occupiers and agents will be waiting to see if the takeover of Brixton by Segro, confirmed today, will impact on the letting policy at Trafford Park, the biggest estate in the North West.
Brixton controlled nearly 3m sq ft of warehousing at Trafford Park and had a reputation for holding out for headline rents and for not employing agents.
Segro, which already owns 2.6m sq ft at Heywood Distribution Park in Rochdale, plans to raise £250m from a share placing after agreeing to buy its rival for £110m in an all-share deal. The two companies will swap 1.75 shares in Segro, worth 40¼p based on Wednesday's closing price, for every Brixton share. The price is lower than expected when Segro revealed its bid in May.
One industrial agent said: "Brixton was fixed on headline rents but Segro might think 'we've got so much space let's just get bums on seats' and reduce rents for the right deal. It remains to be seen."
The enlarged Segro will have a European property portfolio valued at £5.5bn.