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SEGRO European Logistics Partnership S.à r.l.

Registered in Luxembourg N°: B177300 Page 1

SEGRO European Logistics Partnership

Société à responsabilité limitée

Registered in Luxembourg No: B177300 Subscribed Share Capital: EUR 17,400

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF THE

RÉVISEUR D´ENTREPRISES AGRÉÉ

AS AT AND FOR THE YEAR ENDED

31 DECEMBER 2018

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SEGRO European Logistics Partnership S.à r.l.

Registered in Luxembourg N°: B177300 Page 2

CONTENTS

Shareholders, advisers and other information

3

Managers’ report

4

Managers’ responsibilities statement

12

Report of the reviseur d’entreprises agrée

13

Consolidated income statement

Consolidated statement of comprehensive income

16

17

Consolidated statement of financial position

18

Consolidated statement of changes in equity

19

Consolidated statement of cash flows

20

Notes to the consolidated financial statements

21

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SEGRO European Logistics Partnership S.à r.l.

Registered in Luxembourg N°: B177300 Page 3

SHAREHOLDERS, ADVISORS AND

OTHER INFORMATION

Shareholders

• SEGRO Luxembourg S.à r.l.

35-37 avenue de la Liberté

L-1931 Luxembourg

LUXEMBOURG

• PSP Britannia Limited

10 Bressenden Place

8th Floor

London

SW1E 5DH

United Kingdom

Venture Adviser

• SELP Management Limited

Cunard House

15 Regent Street

London SW1Y 4LR

United Kingdom

Registered place of business

35-37 avenue de la Liberté

L-1931 Luxembourg

LUXEMBOURG

Registered under number B177300

Managers

• Mr. Desmond Mitchell

• Mr. Neil Ross

• Mr. Philip Anthony Redding

• Mr. Stéphane Jalbert (resigned 23 July 2018)

• Mr Oliver Vines (appointed 23 July 2018)

Auditor

PwC Société coopérative

2, rue Gerhard Mercator

B.P. 1443

L-1014 Luxembourg

LUXEMBOURG

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SEGRO European Logistics Partnership S.à r.l.

Registered in Luxembourg N°: B177300 Page 4

MANAGERS’

REPORT

The Managers have pleasure in presenting their report on the operations of the Group for the year ended 31 December 2018

(“the period”) together with the consolidated financial statements.

CONSTITUTION

SEGRO European Logistics Partnership S.à r.l. (“the Company”) was incorporated on 8 May 2013.

It owns directly or indirectly the companies shown within Note 22, the whole being the “The Group”.

The Group is ultimately owned by SEGRO plc (“the SEGRO Group”) through its subsidiary SEGRO Luxemburg and

PSP Investment Group through their subsidiary PSP Britannia Limited.

PRINCIPAL ACTIVITIES

The principal activity of the Group is to invest in prime logistics investment properties and development sites located

in Continental Europe. The investment portfolio comprises logistics properties together with undeveloped sites held

for development.

RESEARCH AND DEVELOPMENT

The Group has not undertaken any research and development activities and has no intention to do so in the future.

MARKET OUTLOOK

European big box warehouses continue to be in demand by both occupiers and investors. The macroeconomic

backdrop remains benign across our markets, even if recent data suggest a slowing rate of GDP growth. However, the

e-commerce revolution continues to have a significant impact on supply chains, particularly for retailers, and this is

driving demand for modern, big box warehouse space along major transport corridors and in key logistics hubs across

Europe.

As a result, vacancy rates remain low across SELP’s markets (reflected in SELP’s own portfolio) and supply remains

disciplined, with most space being built on a pre-let or turnkey basis, with only modest speculative development. As a

result, occupier demand and supply is largely in balance which means that we see no signs of oversupply in any of our

markets, but we continue to expect rental value growth to be relatively muted.

Investors continue to be attracted by the yields offered by big box warehousing, particularly compared to the low level

of government bond (risk-free) yields in Europe. Investment volumes remain comfortably above the ten year average,

even if they were lower than in 2017 which saw the completion of a number of very substantial portfolio transactions.

Yields continued to compress during the year as a result.

Given this context, the outlook for European big box warehouse assets remains positive.

EXISTENCE OF BRANCHES

The Group has no branches as of 31 December 2018.

ACQUISITION OF OWN SHARES

The Group did not acquire any of its own shares during the year ended 31 December 2018.

SIGNIFICANT EVENTS OCCURING AFTER THE BALANCE SHEET DATE

The Group entered into contractual arrangements to purchase a 28,400 sq m building located in Barcelona, Spain.

On 1 January 2019 the Group restructured the Czech property owning entities via a merger.

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KEY PERFORMANCE INDICATORS

CAPITAL ALLOCATION

At 31 December 2018, the Group held investment properties valued at €3,479 million (2017: €2,889 million).

The Group continued to grow assets under management via acquisitions of development land, standing stock and

through the construction of prime logistics buildings on the Group’s land bank.

The portfolio remains anchored by the core markets of France, Germany and Poland. The Group continued to grow in

Italy, adding to its prime portfolio with the acquisition of four newly built assets in Turin, Bologna and Milan. The

Group exited Belgium with the sale of its portfolio in the year.

The Group’s portfolio generated a capital value increase of 7.7 per cent in 2018 (2017: 6.6 per cent). This is reflected

by a 6.0 per cent capital value increase in completed assets held throughout the period (2017: 5.0 per cent) due to

generally stable rental values and a moderate reduction in yields, and enhanced by a 19.0 per cent uplift (2017: 14.4

per cent) in the value of buildings under construction.

The development and acquisition of new buildings mean that the average building age of the portfolio has decreased

to 8.3 years (2017: 8.9 years) with 66 per cent of the Group’s portfolio being under ten years old (2017: 69 per cent),

and 43 per cent being under five years old (2017: 36 per cent). The Group actively manages the portfolio to maintain a

modern portfolio.

PORTFOLIO BY

VALUE

Germany €1,037m

Poland €786m

France €776m

Italy €392m

Netherlands €194m

Czech Republic €160m

Spain €134m

Total €3,479m

PORTFOLIO

VALUATION GROUP HEADLINE

RENT

€3,479m €191m 2017: €2,889m

2017: €173m

PORTFOLIO

VALUATION

CHANGE

IFRS PROFIT

BEFORE TAX

+7.7% €305.1m 2017: +6.6% 2017: €262.1m

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ACTIVE ASSET MANAGEMENT

At 31 December 2018, the portfolio generated €191 million of headline rent. This increase from 31 December

2017 (€173 million) was due in part to acquisitions during the period and additional income being generated from the

development of the Group’s land bank where several properties have been completed, mainly on a pre-let basis.

The customer base continues to be well diversified with the Group’s top 20 customers accounting for 41 per cent of

total headline rent. The largest customer, Richemont Group, accounts for 3.3 per cent.

€8.3 million additional headline rent was contracted through completed developments. In addition to the

increased rents from the Group’s existing assets, the Group contracted €8.3 million of headline rent from pre-let

agreements and lettings of speculative developments prior to completion (2017: €10.4 million).

IFRS profit before tax in 2018 was €305.1 million (2017: €262.1 million) principally reflecting higher realised and

unrealised gains in the portfolio. Realised and unrealised gains on investment properties of €227.3 million (2017:

€175.9 million) have been recognised in the consolidated income statement as the value of our portfolio has increased

during the year.

Vacancy remains low at 3.0 per cent as at 31 December 2018 (31 December 2017: 2.5 per cent). The Group

continues to pursue active asset management strategies that have kept the vacancy rate of the portfolio at a low level.

Approximately 0.4 percentage points relates to recently completed speculative developments. The average vacancy

rate during the period was 3.0 per cent (2017: 2.5 per cent).

If short-term lettings were to be treated as vacant space, the vacancy rate would increase to 3.6 per cent (31 December

2017: 3.3 per cent).

High retention rate of 81 per cent and re-letting rate of 93 per cent (2017: 76 per cent and 97 per cent

respectively). Approximately €20.9 million of rent was at risk from break or lease expiries during the period with 81

per cent being retained in existing space.

The weighted average lease length of the portfolio at 31 December 2018 was 5.6 years to break (31 December

2017: 5.3 years) and 6.7 years to expiry (31 December 2017: 6.5 years). This was supported by the active management

of the portfolio and acquisitions of modern, long leased properties as well as re-gearing existing leases and attracting

new occupiers to fill existing vacant properties.

RETENTION

RATE

VACANCY

81% 3.0% 2017: 76%

2017: 2.5%

RE-LETTING

RATE

LOAN TO

VALUE

93% 34% 2017: 97% 2017: 35%

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FUNDING THE PORTFOLIO

The loan to value ratio at 31 December 2018 was 34 per cent (31 December 2017: 35 per cent). As at 31 December

2018 the Group’s loan to value ratio was at a level that is comfortably within the financial covenants contained within

the Group’s financing facilities (see Note 12).

The Managers believe the key risks of the Group’s activity include exposure to interest rate risk, credit risk and cash

flow risk. See accounting policies Note 1 and Note 12 for detail of the Group’s financial risk management objectives

and policies.

ACQUISITIONS

The Group acquired €359 million of land and assets during 2018, continuing the momentum of 2017 (€183

million).

Germany: The Group acquired a 2.3 hectare site in close proximity to the Group’s existing park and developments in

Krefeld. The site will support 10,400 sq m of logistics developments.

France: The Group acquired a single 46,500 sq m logistics asset occupied by Lidl in close proximity to Lyon St.

Exupery airport and a nearby 19.4 hectare site which will be developed over phases to provide 91,000 sq m of modern

logistics space.

Poland: The Group acquired two land plots at sites adjacent to the Group’s existing estates. The additional land will

enhance the Group’s logistics parks at Nadarzyn and Łódź and will support 43,500 sq m of logistics assets when fully

developed.

Netherlands: A 7.1 hectare land plot was acquired near Venlo which will add 44,000 sq m of newly built stock when

fully developed. The Group also acquired a 31,000 sq m warehouse in Tilburg in close proximity to the Group’s

existing assets in the area.

Spain: The Venture acquired a leasehold interest, with the option to purchase the freehold after five years, on a site

close to the Group’s existing interests in Madrid. The 6 hectare site will support 38,000 sq m of logistics space

configured over two buildings with phase one construction expected in early 2019.

A 6.8 hectare site in the Mollet district of Barcelona was also acquired in the year. The site will be developed

speculatively and will support 40,000 sq m of logistics developments.

ACQUISITIONS OF

LAND & ASSETS

DISPOSALS OF

LAND & ASSETS

DEVELOPMENT

COMPLETIONS CURRENT PIPELINE

POTENTIAL RENT

€359m €165m 168,000 sq m €13.5m 2017: €183m

2017: €57m

2017: 209,000 sq m

2017: €13.9m

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ACQUISITIONS (CONTINUED)

Italy: The Group acquired a total of seven buildings in the key logistics sub-markets of Bologna, Castel San Giovanni

(Milan) and Turin. The buildings are newly completed logistics warehouses let on long leases and provide a total of

300,000 sq m of logistics space.

DISPOSALS

The Group completed €165 million of investment disposals in the year (2017: €57 million).

The Group sold a portfolio of two assets and three land plots in Belgium in the year, as well as a portfolio of four

assets in Germany and a standalone asset in Poland. The proceeds were used to support the Group’s investment

activities.

DEVELOPMENT ACTIVITY: COMPLETED, CURRENT & FUTURE

The Group completed 168,000 sq m of new space during 2018, continuing the momentum in 2017 (209,000 sq m).

These projects were 58 per cent pre-let prior to the start of construction and 89 per cent let as at the end of December

2018, generating €8.3 million of headline rent, with a potential further €1.0 million once the remaining space is let.

As at 31 December 2018, the Group had a current development pipeline of 248,000 sq m that will generate €13.5

million of headline rent once complete and fully let. These projects were 45 per cent pre-let as at 31 December 2018.

The portfolio holds a land bank of 215 hectares identified for future development as at 31 December 2018,

equating to €136 million, or approximately 4 per cent of the Group’s portfolio. The Group invested €48 million in

acquiring new land during the year associated with developments expected to start in the near term.

The Group plans to grow the portfolio size in the next years, both through acquisition of standing assets and through

development of existing and newly acquired development land.

60,100 sq m asset acquired in Bologna let to Richemont Group 18,600 sq m developed in Bischofsheim, Germany

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CORPORATE GOVERNANCE

STATEMENT

Governance is an important element of the Group’s culture and affects its decisions and actions, being central to all

areas of the business and designed to create an environment where matters can be considered and decisions made at the

appropriate level in the organisation.

The Luxembourg Corporate Governance Code 2009 (the ‘Code’) is the framework against which the Company

measures its compliance with governance and a link to it can be found at:

https://www.luxembourgforfinance.com/sites/luxembourgforfinance/files/code-bourse-eng.pdf

The Company is governed by its articles of association and the private Shareholders’ Agreement made between (1) PSP

Britannia Limited, (2) SEGRO Luxembourg S.à r.l., (3) the Company, (4) SELP Investments S.à r.l., and (5) SELP

Finance S.à r.l., (“the Shareholders’ Agreement”).

THE BOARD

The Board is responsible for creating and delivering sustainable shareholder value. Each Manager acts in a way he

believes, best promotes the long-term success of the Group for the benefit of Shareholders and stakeholders.

Composition

The Company has four Managers who have the power to represent the Company, details of which are set out on page 3.

Each Shareholder is responsible for the appointment of two Managers in accordance with the Shareholders’ Agreement,

and each Manager has agreed contractual terms with the appropriate Shareholder appointing him. The Managers were

appointed at a general meeting of the Shareholders for an unlimited period of time, although the Shareholder appointing

them can remove the relevant manager at any time in accordance with the provisions of the Shareholders’ Agreement.

The Managers are remunerated by the appointing Shareholder.

On 23 July 2018, Stephane Jalbert was replaced as a Manager of the Company by Oliver Vines.

Each Board member has experience in the real estate industry as well as experience as Managers within similar

enterprises.

Although the Company does not have a Diversity Policy, the Shareholders did not discriminate on the grounds of

gender or age (or any other factor) when selecting the Managers. Each Manager was appointed because of his

qualification, experience and suitability as a Manager and because he was the best person for the role.

Board Committees

The Managers meet regularly at the Group’s registered address in order to consider matters that are of significance to

the Company, to allow it to achieve the objectives of the Company and the Group. The objectives of the Company and

Group are detailed on page 21.

The Board of Managers has decided not to delegate any of its responsibilities to Board committees and therefore does

not have an audit, investment or risk management committee. Instead, the Board meets most months, to attend to all

relevant affairs of the Company, including those related to investment (acting on the advice of the Group’s appointed

investment adviser), risk management and ensuring the robustness of internal controls and the soundness for the

process for preparing the Group’s audited consolidated financial statements. The Board is satisfied that it has the

relevant knowledge, experience and time to retain control over all of these matters and makes use of the available

resource and experience of SELP Management Limited to allow it to effectively discharge its duties. With regards to

the preparation of the audited consolidated financial statements, the auditor attends the relevant Board meeting when

the consolidated financial statements are being considered and is also available outside of the meeting to discuss any

matter with the Managers should they so wish.

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PROVISION OF SERVICES AND EMPLOYEES

The Group employs a number of external service providers in relation to the management of the Group’s assets.

Principally, the Group contracts, SELP Management Limited, a related party, to provide services in relation to

investment decisions, development project management, property and asset management as well as administrative

services.

The Group has also contracted three members of staff within its head office in Luxembourg. The recruitment of the

Group’s employees was carried out by SELP Management Limited as part of its role of providing administration

services to the Group. As part of its remit, SELP Management Limited also provides Human Resources services to the

employees applying its policies on equal opportunities and human rights to ensure that the best people are attracted and

retained.

INVESTMENT ADVISER TO THE GROUP

As set out on page 3, SELP Management Limited, is appointed to act as investment adviser to the Group.

AUDITOR OF THE GROUP

PricewaterhouseCoopers Société cooperative was the auditor of the Group for the year ended 31 December 2018.

POLICIES AND CODES

The purpose of the Group’s key policies and procedures is to protect the integrity of the Company and the Group and

its decision making process. The Group operates policies that are ethical and the key policies are listed below:

Health and Safety

High standards of health and safety are important to the Group. As a result of SEGRO’s role as development project

manager, property manager and asset manager, the Board decided to adopt SEGRO’s health and safety policy in 2013.

This can be found at www.SEGRO.com. The policy is designed to ensure that health and safety is embedded into the

Group’s culture with risks being managed through controls, training and raising awareness.

Sustainability

The Company is committed to owning a high quality portfolio of modern warehouses which deliver sustainable

performance for its customers. To assist it in doing so, and on the recommendation of SELP Management Limited, the

Group adopted SEGRO’s sustainability strategy in 2015, which focuses on ensuring that building design, new buildings

and refurbishments use resources efficiently, particularly with regards to the use of energy, materials and waste

management.

Related Parties

The Group enacts contracts and arrangements with related parties in line with best market practice on an arms-length

basis and discloses such arrangements in the notes to the Consolidated Financial Statements.

Conflicts of Interest

Managers and officers strive to avoid any conflict of interest between the interests of the Company and the Group on

the one hand, and personal, professional, and business interests on the other. This includes avoiding actual conflicts of

interest as well as the perception of conflicts of interest.

Conflicts of interest are monitored and recorded. Managers, employees, officers of the Group and the adviser to the

Group are required to declare Conflicts of Interest.

Code of Ethics including the Policy on Anti Bribery and Corruption

The Company seeks to maintain high ethical standards in its business activities. The Group is committed to conducting

business in accordance with applicable laws and regulations that are designed to maintain and enhance the Group’s

reputation. The Group strives to behave in a professional, honest and responsible manner and avoids any conduct which

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may be considered to be corrupt or contrary to good corporate ethics. Any activity that seeks to bribe, corrupt or

otherwise improperly influence a public official or third party in any country, is strictly prohibited by the Group.

CAPITAL MANAGEMENT

The Group’s capital management policies are included within the notes to the Consolidated Financial Statements.

Set out below is a table showing the Shareholders of the Company, and the amount of the share capital that they each

hold:

Name Amount of Share Capital

SEGRO Luxembourg S.à r.l. 50%

PSP Britannia Limited 50%

As at 31 December 2018 the Company’s issued share capital was 17,400 shares of €1 each. There are no special rights

which attach to the shares and they all rank pari passu.

The Managers do not hold any shares in the Company and there is no intention that they will do so in the future. Set out

below is a table which shows the number of shares held by each Shareholder as at 31 December 2018:

Name Amount of Share Capital

SEGRO Luxembourg S.à r.l. 8,700

PSP Britannia Limited 8,700

TOTAL 17,400

RESULTS AND DISTRIBUTIONS

The profit for the period amounted to €263,865k (€225,590k in 2017) which include realised and unrealised profits of

€227,335k (€175,904k in 2017) from investment properties. After deduction of the profit attributable to non-

controlling interests, the profit attributable to the Group is €147,358k (€126,127k in 2017).

EMPLOYEES

The Group had an average of three employees in 2018, based in the Group’s Luxembourg head office.

DISCLOSURE OF INFORMATION TO THE AUDITORS

Each of the Managers of the Company at the date of approval of this annual report confirms that:

• So far as the Manager is aware, there is no relevant audit information of which the Company’s auditor is unaware; and

• The Manager has taken all the steps he/she ought to have taken as a Manager in order to make himself/herself aware

of any relevant audit information and to establish that the Company’s auditor is aware of that information.

On behalf of the Board of Managers,

Neil Ross

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MANAGERS’ RESPONSIBILITIES

STATEMENT

The Managers are responsible for preparing the Consolidated Financial Statements in accordance with applicable law

and regulations.

Company law requires the Managers to prepare Consolidated Financial Statements for each financial year. Under that

law the Managers have elected to prepare the consolidated financial statements in accordance with International

Financial Reporting Standards (IFRS) as adopted by the European Union. Under company law the Managers must not

approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company

and of the profit or loss of the company for that period. In preparing these Consolidated Financial Statements, the

Managers are required to :

• properly select and apply accounting policies ;

• present information, including accounting policies, in the manner that provides relevant, reliable, comparable

and understandable information ;

• provide additional disclosures when compliance with the specific requirements in IFRS are insufficient to

enable users to understand the impact of particular transactions, other events and conditions on the entity’s

financial position and financial performance ; and

• make an assessment of the company’s ability to continue as a going concern.

The Managers are responsible for keeping adequate accounting records that are sufficient to show and explain the

company’s transactions and disclose with reasonable accuracy at any time the financial position of the company. They

are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention

and detection of fraud and other irregularities.

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PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T : +352 494848 1, F : +352 494848 2900, www.pwc.lu Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518

Audit report

To the Partners of SEGRO European Logistics Partnership S.à r.l.

Report on the audit of the consolidated financial statements

Our opinion

In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of SEGRO European Logistics Partnership S.à r.l. (the “Company”) and its subsidiaries (the “Group”) as at 31 December 2018, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

What we have audited

The Group’s consolidated financial statements comprise:

the consolidated statement of financial position as at 31 December 2018;

the consolidated income statement and the consolidated statement of comprehensive income for the year then ended;

the consolidated statement of changes in equity for the year then ended;

the consolidated statement of cash flows for the year then ended; and

the notes to the consolidated financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier” (CSSF). Our responsibilities under the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the “Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the consolidated financial statements” section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the consolidated financial statements. We have fulfilled our other ethical responsibilities under those ethical requirements.

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14

Other information

The Board of Managers is responsible for the other information. The other information comprises the information stated in the Managers’ report but does not include the consolidated financial statements and our audit report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Managers and those charged with governance for the consolidated financial statements

The Board of Managers is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs as adopted by the European Union, and for such internal control as the Board of Managers determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Managers is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Managers either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overssing the Group’s financial reporting process.

Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the consolidated financial statements

The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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.Ir-pwc

As part ofan audit in accordance with the Lawof 23 July 2016 andwith ISAs as adopted for Luxembourgby the CSSF, we exercise professional judgment and maintain professional scepticism throughout theaudit. We also:

0 identify and assess the risks of material misstatement of the consolidated financial statements,whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control;

0 obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Group’s internal control;

a evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Board of Managers;

0 conclude on the appropriateness of the Board of Managers’ use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists relatedto events or conditions that may cast significant doubt on the Group’s ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required to draw attention in ouraudit report to the related disclosures in the consolidated financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained upto the date of our audit report. However, future events or conditions may cause the Group to cease tocontinue as a going concern;

0 evaluate the overall presentation, structure and content of the consolidated financial statements,including the disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation;

0 obtain sufficient appropriate audit evidence regarding the financial information of the entities andbusiness activities within the Group to express an opinion on the consolidated financial statements.We are responsible for the direction, supervision and performance of the Group audit. We remainsolely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

Report on other legal and regulatory requirements

The Managers’ report is consistent with the consolidated financial statements and has been prepared inaccordance with applicable legal requirements.

PricewaterhouseCoopers, Société coopérativeRepresented by

Luxembourg, 14 February 2019

W}John Ravoisin

15

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CONSOLIDATED INCOME STATEMENT

for the year ended 31 December 2018

Notes 2018 €’000s

2017 €’000s

Income

Total revenue 3 220,062 203,765

Property operating expenses 4 (105,872) (68,385)

Net income 114,190 135,380

Administrative expenses 5 (2,988) (2,014)

Realised and unrealised gains from investment properties 6 227,335 175,904

Operating Profit 338,537 309,270

Finance costs 7 (33,423) (47,210)

Net Profit before Tax 305,114 262,060

Corporate current tax 8(a) (8,353) (7,804)

Deferred tax 8(b) (32,896) (28,666)

Net Profit after Tax 263,865 225,590

Attributable to:

Equity Shareholders 147,358 126,127

Non-Controlling Interests 116,507 99,463

263,865 225,590

All income and expenses in the above statement derive from continuing activities.

The accompanying notes form an integral part of these consolidated financial statements.

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CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

for the year ended 31 December 2018

The accompanying notes form an integral part of these consolidated financial statements.

2018 €’000s

2017 €’000s

Profit for the year

263,865

225,590

Items that will not be reclassified subsequently to profit or loss – –

Items that may be reclassified subsequently to profit or loss – –

Total comprehensive profit for the year 263,865

225,590

Attributable to Equity Shareholders 147,358 126,127

Attributable to Non-Controlling Interests 116,507 99,463

Total comprehensive profit for the year 263,865 225,590

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CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

As at 31 December 2018

Approved by the Managers on 14 February 2019

The accompanying notes form an integral part of these consolidated financial statements.

Notes 2018 €’000s

2017 €’000s

Assets

Non-current Assets

Investment properties 9 3,478,735 2,834,445

Plant and equipment 36 42

3,478,771 2,834,487

Current assets

Trade and other receivables 10 170,652 87,355

Non-current assets classified as held for sale 9 - 54,757

Cash and cash equivalents 11 50,189 45,004

220,841 187,116

Total assets 3,699,612 3,021,603

Liabilities

Non-current liabilities

External borrowings 12(a) (1,243,615) (1,047,368)

Related party borrowings 12(b) (385,627) (385,728)

Deferred tax liabilities 8(b) (137,037) (117,735)

(1,766,279) (1,550,831)

Current liabilities

Trade and other payables 12(c) (110,006) (92,766)

(110,006) (92,766)

Total liabilities (1,876,285) (1,643,597)

Net assets 1,823,327 1,378,006

Equity

Share capital 13(a) (17) (17)

Share premium 13(b) (573,460) (448,230)

Retained earnings (442,973) (318,745)

Total equity attributable to owners of the parent (1,016,450) (766,992)

Non-Controlling Interests (806,877) (611,014)

Total equity (1,823,327) (1,378,006)

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CONSOLIDATED STATEMENT

OF CHANGES IN EQUITY for the year ended 31 December 2018

Share

Capital

Share Premium

Retained Earnings

Total Equity Attributable To Owners Of The

Parent

Non-

Controlling Interest

Total Equity

€'000s €'000s €'000s €'000s €'000s €'000s

Balance as at 1 January 2018 17 448,230 318,745 766,992 611,014 1,378,006

Profit for the Period - - 147,358 147,358 116,507 263,865

Capital Injected - 125,230 - 125,230 97,401 222,631

Dividends paid to ordinary shareholders - - (23,130) (23,130) (18,045) (41,175)

Balance as at 31 December 2018 17 573,460 442,973 1,016,450 806,877 1,823,327

for the year ended 31 December 2017

Share

Capital

Share Premium

Retained Earnings

Total Equity Attributable To Owners Of The

Parent

Non-

Controlling Interest

Total Equity

€'000s €'000s €'000s €'000s €'000s €'000s

Balance as at 1 January 2017 17 381,938 196,663 578,618 463,169 1,041,787

Profit for the Period – – 126,127 126,127 99,463 225,590

Capital Injected – 66,292 – 66,292 51,524 117,816

Dividends paid to ordinary shareholders- – (4,045) (4,045) (3,142) (7,187)

Balance as at 31 December 2017 17 448,230 318,745 766,992 611,014 1,378,006

The accompanying notes form an integral part of these consolidated financial statements.

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CONSOLIDATED STATEMENT

OF CASH FLOWS For the year ended 31 December 2018

Investing and financing transactions that did not require the use of cash and cash equivalents are excluded from the

cash flow statement. The Group did not enter into such transactions during 2018.

The accompanying notes form an integral part of these consolidated financial statements.

Notes 2018 €’000s

2017 €’000s

Cash flows from operating activities

17 33,328 114,053

Interest paid (36,057) (45,458)

Tax paid (3,877) (5,235)

Net cash (used)/received from operating activities (6,606) 63,360

Cash flows from investing activities

Purchase and development of investment properties (366,108) (183,255)

Sale of investment properties 160,860 57,820

Capital expenditure on investment properties (156,743) (110,392)

Net cash used in investing activities (361,991) (235,827)

Cash flows from financing activities

Net drawdown/ (repayment) of shareholder loans 597 (170,493)

Net repayment of related party loans (697) (981)

Net drawdown/(repayment) of bank borrowings - (201,205)

Net drawdown on Bonds - 493,909

Net drawdown/ (repayment) of Revolving Credit Facilities 194,230 (120,000)

Exceptional costs of refinancing - (4,199)

Financing costs (1,804) (1,655)

Proceeds from issue of share capital 222,631 117,816

Dividends paid to ordinary shareholders (41,175) (7,187)

Net cash from financing activities 373,782 106,005

Net increase/(decrease) in cash and cash equivalents 5,185 (66,462)

Cash at beginning of the year 45,004 111,466

Cash at end of the year 50,189 45,004

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for the year ended 31 December 2018

1. General information

SEGRO European Logistics Partnership S.à r.l (“the Company”) was incorporated on 8 May 2013 under the

law of 10 August 1915 (as amended) as a “société à responsabilité limitée” for an unlimited duration. The

registered office of the Company is established in Luxembourg City at 35-37 av. de la Liberté, L-1931,

Luxembourg and is registered at the Trade and Companies register in Luxembourg under the number B 177

300.

The Company’s financial year begins on 1 January and ends on the 31 December of each year. The

Company and its subsidiaries (“the Group”), had an average of three employees based in the registered

office of the Company. The Group lodges its accounts with the Registre de Commerce et des Sociétés

(www.rcsl.lu).

These Consolidated Financial Statements have been approved for issue by the Board of Managers on 14

February 2019. The shareholders have the power to amend the Consolidated Financial Statements after

issue.

The purpose of the Group is:

To act as an investment holding company and to co-ordinate the business of any corporate bodies in which

the Group is for the time being directly or indirectly interested, and to acquire (whether by original

subscription, tender, purchase, exchange or otherwise) the whole of or any part of the stock, shares,

debentures, debenture stocks, bonds and other securities issued or guaranteed by any person and any other

asset of any kind and to hold the same as investments, and to sell, exchange and dispose of the same ;

To carry on any trade or business whatsoever and to acquire, undertake and carry on the whole or any part

of the business, property and/or liabilities of any person carrying on any business;

To invest and deal with the Group's money and funds in any way the Board of Managers thinks fit and to

lend money and give credit in each case to any person with or without security;

To borrow, raise and secure the payment of money in any way the Board of Managers thinks fit, including

by the issue (to the extent permitted by Luxembourg Law) of debentures and other securities or

instruments, perpetual or otherwise, convertible or not, whether or not charged on all or any of the Group's

property (present and future) or its uncalled capital, and to purchase, redeem, convert and pay off those

securities;

To acquire an interest in, amalgamate, merge, consolidate with and enter into partnership or any

arrangement for the sharing of profits, union of interests, co-operation, joint venture, reciprocal concession

or otherwise with any person, including any employees of the Group;

To enter into any guarantee or contract of indemnity or suretyship, and to provide security for the

performance of the obligations of and/or the payment of any money by any person (including any corporate

body in which the Group has a direct or indirect interest or any person (a "Holding Entity") which is for the

time being a member of or otherwise has a direct or indirect interest in the Group or anybody corporate in

which a Holding Entity has a direct or indirect interest and any person who is associated with the Group in

any business or venture, with or without the Group receiving any consideration or advantage (whether

direct or indirect), and whether by personal covenant or mortgage, charge or lien over all or part of the

Group's undertaking, property or assets (present and future) or by other means; for the purposes of this

Article 3.6 "guarantee" includes any obligation, however described, to pay, satisfy, provide funds for the

payment or satisfaction of, indemnify and keep indemnified against the consequences of default in the

payment of, or otherwise be responsible for, any indebtedness or financial obligations of any other person;

To purchase, take on lease, exchange, hire and otherwise acquire any real or personal property and any

right or privilege over or in respect of it;

To sell, lease, exchange, let on hire and dispose of any real or personal property and/or the whole or any

part of the undertaking of the Group, for such consideration as the Board of Managers thinks fit, including

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for shares, debentures or other securities, whether fully or partly paid up, of any person, whether or not

having objects (altogether or in part) similar to those of the Group ; to hold any shares, debentures and

other securities so acquired; to improve, manage, develop, sell, exchange, lease, mortgage, dispose of, grant

options over, turn to account and otherwise deal with all or any part of the property and rights of the

Company;

To do all or any of the activities provided above (a) in any part of the world; (b) as principal, agent,

contractor, trustee or otherwise; (c) by or through trustees, agents, sub-contractors or otherwise; and (d)

alone or with another person or persons; and

to do all activities (including entering into, performing and delivering contracts, deeds, agreements and

arrangements with or in favour of any person) that are in the opinion of the Board of Managers incidental

or conducive to the attainment of all or any of the Group's objects, or the exercise of all or any of its

powers.

These Consolidated Financial Statements are presented in Euros because that is the currency of the primary

economic environment in which the Group operates.

2. Significant accounting policies

Basis of preparation

The Consolidated Financial Statements have been prepared in accordance with IFRS adopted by the

European Union. The Group’s Consolidated Financial Statements also comply with Article 4 of the EU IAS

Regulations.

The Consolidated Financial Statements have been prepared on a going concern basis, applying a historical

cost convention, except for the measurement of investment property, financial assets classified as available-

for-sale and derivative financial instruments that have been measured at fair value.

In the current year, the Group has applied a number of amendments to IFRSs and a new Interpretation

issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an

accounting period that begins on or after 1 January 2018.

• IFRS 9 ‘Financial instruments’

• IFRS 15 ‘Revenue from contracts with customers’

• Amendments to IAS 40, ‘Investment property’ relating to transfers of investment property

• Annual improvements to IFRSs 2014-2016 Cycle

• IFRIC 22 ‘Foreign currency transactions and advance consideration’

The Group had to change its accounting policies following the adoption of IFRS 9 and 15 but there were no

retrospective adjustments following the adoption. This is disclosed further below. The other amendments

did not have any impact on the amounts recognised in prior period and are not expected to significantly

affect the current or future periods.

IFRS 9 Financial Instruments

IFRS 9 replaces the provisions of IAS 39 that relate to the recognition, classification and measurement of

financial assets and financial liabilities, derecognition of financial instruments, impairment of financial

assets and hedge accounting. The adoption of IFRS 9 from 1 January 2018 resulted in no adjustments to

the amounts recognised in the financial statements. In accordance with the transitional provisions,

comparative figures have not been restated.

a) Classification and measurement

On 1 January 2018 (the date of initial application of IFRS 9), the Group’s management has assessed which

business models apply to the financial assets held by the Group and has classified its financial instruments

into the appropriate IFRS 9 categories. The Group did not hold assets classified as ‘held to maturity’ or

‘available for sale’ under IAS 39 at 1 January 2018 and as a result there was no reclassification of these

financial assets on adoption of IFRS 9. The other financial assets held in the current or previous reporting

period have not been reclassified.

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b) Impairment of financial assets

The Group’s significant financial assets that are subject to IFRS 9’s new expected credit loss model are

trade receivables from the leasing of investment properties. Based on the reasons set out in the Credit risk

management section in Note 17 the credit risk associated with unpaid rent is deemed to be low. The Group

was required to revise its impairment methodology under IFRS 9. This did not result in a material change in

in the loss allowance recognised under IFRS 9 compared to that held under IAS 39. Note 10 provides

further details on the measurement of the loss allowance and amount recognised at 31 December 2018.

While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified

impairment loss was immaterial.

IFRS 15 Revenue from Contracts with Customers

The Group has adopted IFRS 15 Revenue from Contracts with Customers from 1 January 2018.

IFRS 15 does not apply to rental income which makes up over 76 per cent of total revenue of the Group,

but does apply to other non-core revenue streams; service charge income, management and performance

fees and trading property disposals. IFRS 15 did not have a material impact on the timing of revenue

recognition for the non-core income streams.

There were no adjustments to the amounts recognised in the financial statements and no restatement of the

comparative for the 2017 financial year. The accounting policies for ‘Service charges and other recoveries

from tenants’ and ‘Sale of trading properties’ have been changed in line with the new IFRS 15

requirements.

A number of new standards and amendments to standards and interpretations are effective for annual

periods beginning after 1 January 2018, and have not been applied in preparing these consolidated financial

statements:

• IFRS 16 ‘Leases’

• Amendments to IFRS 3 Business Combinations

None of these standards not yet effective are expected to have a significant effect on the Consolidated

Financial Statements of the Group.

Amendments to IFRS 3 Business Combinations (subject to EU endorsement) are effective for financial

years commencing on or after 1 January 2020 provide a revised framework for evaluating a business and

introduces and optional ‘concentration test’. The amendment will impact the assessment and judgements

used in determining whether future property transactions represent an asset acquisition or business

combination.

There are no other IFRSs or IFRS IC interpretations that are not yet effective that would be expected to have

a material impact on the Group.

Basis of consolidation

The Consolidated Financial Statements comprise the financial statements of the Company and its

subsidiaries, “the Group”.

The controlling share in the Group is held by SEGRO European Logistics Partnership S.à r.l. via its holding

in SELP Investments S.à r.l which, in turn holds a majority of shares in SELP Finance S.à r.l. The Group’s

subsidiaries are held by SELP Finance S.à r.l.

The share of shareholder interests and profit or loss attributable to non-Group shareholders is attributed to

Non-Controlling Interests. Non-Controlling Interests are held directly or indirectly by SEGRO Luxembourg

S.à r.l. and PSP Britannia Ltd; each own 50 per cent shareholding in SEGRO European Logistics

Partnership. Inter-company transactions, balances and unrealised gains or losses on transactions between

Group companies are eliminated, except where there are indications for impairment.

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group

controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with

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the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully

consolidated from the date on which control is transferred to the Group. They are deconsolidated from the

date that control ceases.

Business combinations

The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the acquisition is

measured at the aggregate of the fair values of assets given, liabilities incurred or assumed, and equity

instruments issued by the Group in exchange for control of the acquiree. Acquisition related costs are

recognised in the Consolidated Income Statement as incurred. The acquiree’s identifiable assets, liabilities

and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair

value at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for

sale in accordance with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations, which are

recognised and measured at fair value less costs to sell.

Goodwill arising on acquisition is recognised as an asset measured at cost, being the excess of the cost of

the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities

and contingent liabilities recognised. If, after reassessment, the Group’s interest in the net fair value of the

acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business

combination, the excess is recognised immediately in the Consolidated Income Statement.

The interest of non-controlling interest shareholders in the acquiree is initially measured at their proportion

of the net fair value of the assets, liabilities and contingent liabilities recognised.

When the consideration transferred by the Group in a business combination includes a contingent

consideration arrangement, the contingent consideration is measured as its acquisition-date fair value.

Changes in fair value of the contingent consideration that qualify as measurement period adjustments are

adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments

are adjustments that arise from additional information obtained during the ‘measurement period’ (which

cannot exceed one year from the acquisition date) about facts and circumstances that existed at the

acquisition date.

Contingent consideration that is classified as an asset or a liability is re-measured at subsequent reporting

dates in accordance with IFRS 9, as appropriate, with the corresponding gain or loss being recognised in the

Group Consolidated Income Statement.

Accounting for asset acquisitions

For acquisitions of a subsidiary not meeting the definition of a business, the Group allocates the cost

between the individual identifiable assets and liabilities in the Group based on their relative fair values at

the date of acquisition. Such transactions or events do not give rise to goodwill.

Going concern

Note 2 to the Consolidated Financial Statements includes the Group’s risk factors, along with its policies

and processes for managing such risks.

The Group considers that positive net operating cash flows at €33,328k (2017: €114,053k) together with its

short term net assets will allow the Group to meet its short-term commitments. As a consequence,

Management believes that the Group has adequate resources to continue in operation for the foreseeable

future and, accordingly, continues to adopt the going concern basis of accounting in preparing the annual

Consolidated Financial Statements.

Cash Flow Statement

The Group reports cash flows from operating activities using the indirect method. Interest received is

presented within investing cash flows; interest paid is presented within operating cash flows. The

acquisitions of investment properties are disclosed as cash flows from investing activities because this most

appropriately reflects the Group's business activities.

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Foreign currency transactions

Foreign currency transactions are translated into the functional currency at the exchange rates ruling on the

transaction date. Foreign exchange gains and losses resulting from settling these, or from retranslating

monetary assets and liabilities held in foreign currencies, are booked in the Consolidated Income Statement.

Consolidation of foreign entities

The Consolidated Financial Statements are presented in Euro which is the Company’s functional currency

and the Group’s presentational currency. The Group is domiciled within the Euro-zone and its operations

are predominately located within the Euro-zone, hence, the Group’s functional currency is the Euro.

Entities located outside the Euro-zone are mainly using Euro as the main operating currency, as a majority

of transactions and balances held in Euro and therefore the Group considers that the functional currency of

these entities is the Euro. Thus no currency translation adjustment (CTA) is recognised in the consolidated

statement of other comprehensive income.

The main exchange rates used to translate foreign currency denominated amounts in 2018 are:

Consolidated Statement of Financial Position: €1 = PLN4.29 (2017: 4.159) and €1 = CZK25.71 (2017:

25.58)

Consolidated Statement of Comprehensive Income: €1 = PLN4.32 (2017: 4.31) and €1 = CZK26.02 (2017:

26.59)

Investment properties are valued by the Group’s independent valuers in Euro.

Investment properties

These properties include completed properties that are generating rent or are available for rent, and

development properties that are under development or land this is available for development. Investment

properties comprise freehold and leasehold properties and are first measured at cost (including transaction

costs), then revalued to market value at each reporting date by independent professional valuers. Leasehold

properties are shown gross of the leasehold payables (which are accounted for as finance lease obligations).

Valuation gains and losses in a period are recognised in the Consolidated Income Statement. As the Group

uses the fair value model, as per IAS 40 Investment Properties, no depreciation is provided. An asset will

be classified as held for sale in line with IFRS 5 Non-Current Assets Held for Sale and Discontinued

Operations, where there is Board approval at the year-end date and the asset is expected to be disposed of

within 12 months after the date of the Consolidated Statement of Financial Position.

Property acquisitions and disposals

Properties are treated as acquired at the point when the Group assumes the significant risks and rewards of

ownership and as disposed of when these risks or rewards are transferred to the buyer. Generally, this

would occur on completion of contract. Any gains or losses arising on de-recognition of the property

(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is

included in profit or loss in the period in which the property is de-recognised.

Leases

Leases where substantially all of the risks and rewards of ownership are transferred to the lessee are

classified as finance leases. All others are deemed operating leases. Under operating leases, properties

leased to tenants are accounted for as investment properties. In cases where only the built part of a property

lease qualifies as a finance lease, the land is shown as an investment property.

Revenue

Revenue includes gross rental income, management fee income, income from service charges and proceeds

from the sale of trading properties.

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Rental income

Rental income from properties let as operating leases is recognised on a straight-line basis over the lease

term. Lease incentives and initial costs to arrange leases are capitalised, then amortised on a straight-line

basis over the lease term (‘rent averaging’). For properties let as finance leases, ‘minimum lease receipts’

are apportioned between finance income and principal repayment, but receipts that were not fixed at lease

inception (e.g. rent review rises) are recognised as income when earned. Surrender premiums received in

the period are included in rental income.

Service charges and other recoveries from tenants

These include income in relation to service charges, directly recoverable expenditure and management fees.

Revenue from providing services is recognised in the accounting period in which the services are rendered.

Revenue from services is recognised based on the actual service provided to the end of the reporting period

as a proportion of the total services to be provided and recognised over time

Sale of trading properties

Proceeds from the sale of trading properties are recognised at the point in time at which control of the

property has been transferred to the purchaser. Therefore, revenue is recognised at a point in time and

generally occurs on completion of the contract and legal title has passed to the customer.

Operating Segments

The Group considers its operating segments to be based on the geographical location of the Group’s assets

and this is reported in a manner consistent with the internal reporting provided to the board of Managers.

The chief operating decision maker is the board of Managers. The board of managers considers the

operating segments to be Northern Europe (principally Germany and Benelux), Central Europe (principally

Poland and Czech Republic), and Southern Europe (principally France, Italy and Spain).

Financial instruments

Borrowings

Borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial

recognition, borrowings are stated at amortised cost with any difference between the amount initially

recognised and the redemption value being recognised in the Consolidated Income Statement over the

period of the borrowings, using the effective interest rate method.

Gross borrowing costs relating to direct expenditure on properties under development or undergoing major

refurbishment are capitalised. The interest capitalised is calculated using the Group’s weighted average cost

of borrowing for the relevant currency. Interest is capitalised as from the commencement of the

development work until the date of practical completion. The capitalisation of finance costs is suspended if

there are prolonged periods when development activity is interrupted.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer

settlement of the liability for at least 12 months after the date of the Consolidated Statement of Financial

Position.

Interest payable and finance costs

Interest payable is charged to the Consolidated Income Statement as accrued. Costs incurred directly in

connection with the issue of debt are deducted from the proceeds and the net amount included in liabilities.

Such costs, together with any premium or discount on issue, are credited or charged, as appropriate, to the

Consolidated Income Statement over the term of the debt at a constant rate on the carrying amount of the

liability.

Trade and other receivables and payables

Trade and other receivables are initially booked at fair value net of transaction costs and subsequently

measured at amortised cost less provisions for impairment.

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The Group applies the IFRS 9 simplified approach to measuring expected credit losses (‘ECLs’) which uses

a lifetime expected loss allowance for all trade receivables. Note 10 details the Group’s calculation for

measuring ECL’s. The Group requires that tenants provide deposits or guarantees. Where a guarantee is in

place the Group does not provide for impairment of monies receivable.

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost

using the effective interest method.

Receivables and payables are classified as current unless the Group has an unconditional right to defer

settlement of the receivables or payables for at least 12 months after the date of the Consolidated Statement

of Financial Position.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly

liquid investments with original maturities of three months or less, and bank overdrafts.

Share Capital & Legal Reserves

Share capital is recognised when issued. Reserves are recognised in line with the local legal requirements

and to the extent that legal reserves are required, not distributed. Share capital and reserves are recognised

at original cost and are held at the cost of issue.

Current and deferred income tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Consolidated

Income Statement, except to the extent that it relates to items recognised directly in other comprehensive

income or equity - in which case, the tax is also recognised in other comprehensive income or equity.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at

the date of the Consolidated Statement of Financial Position in the countries where the Group operates.

Management periodically evaluates positions taken in tax returns with respect to situations in which

applicable tax regulation is subject to interpretation, and establishes provisions where appropriate on the

basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising

between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial

Statements. However, deferred income tax is not accounted for if it arises from initial recognition of an

asset or liability in a transaction other than a business combination that at the time of the transaction affects

neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws)

that have been enacted or substantially enacted by the date of the Consolidated Statement of Financial

Position and are expected to apply when the related deferred income tax asset is realised or the deferred

income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be

available against which the temporary differences can be utilised.

The carrying value of the Group’s investment property is assumed to be realised by sale at the end of use.

The capital gains tax rate applied is that which would apply on a direct sale of the property recorded in the

Consolidated Statement of Financial Position regardless of whether the Group would structure the sale via

the disposal of the subsidiary holding the asset, to which a different tax rate may apply. The deferred tax is

then calculated based on the respective temporary differences and tax consequences arising from recovery

through sale.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, except

where the timing of the reversal of the temporary difference is controlled by the Group and it is probable

that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset

current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate

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to income taxes levied by the same taxation authority on either the same taxable entity or different taxable

entities where there is an intention to settle the balances on a net basis.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies and IFRS, the Managers are required to make

judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not

readily apparent from other sources. The estimates and associated assumptions are based on historical

experience and other factors that are considered to be relevant. Actual results may differ from these

estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the revision affects

only that period, or in the period of the revisions and future periods if the revision affects both current and

future periods.

Significant areas of estimation uncertainty:

Property valuations

Valuation of property is a central component of the business. In estimating the fair value, the Group

engages third party qualified valuers to perform the valuation. Information about the valuation techniques

and inputs used in determining the fair value of the property portfolio is disclosed in Note 9 property

valuation techniques and related quantitative information.

Financial instruments and fair value measurements

In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it

is available. Information about the valuation techniques and inputs used in determining the fair value of

various assets and liabilities is disclosed in Note 12.

Significant areas of judgements in applying the group’s accounting policies:

Accounting for significant acquisitions, disposals and investments

Property transactions are complex in nature. Management considers each material transaction separately

with an assessment carried out to determine the most appropriate accounting treatment and judgements

applied, including whether the transaction represents an asset acquisition or business combination. Where

the Group has acquired property assets by way of acquiring the share capital of the entity that owns the

physical property assets, where this acquisition was not accounted for as a Business Combination and as

neither accounting profit nor taxable profit were affected at the time of the transaction, the initial

recognition exemption in IAS 12, ‘Income Taxes’ has been applied and the Group does not recognise

deferred tax that would otherwise have arisen on temporary differences associated with the acquired assets

and liabilities at initial recognition.

Revenue recognition

In making its judgement over revenue recognition for cut-off for property transactions, management

considered the detailed criteria for the recognition of revenue set out in IAS 18 Revenue and, in particular,

whether the Group had transferred to the buyer the significant risks and rewards of ownership of the assets

disposed. Management also considers the appropriate accounting treatment of tenant lease incentives.

Financial and operational risk management

Financial risks factors

The risk management function within the Group is carried out in respect of financial risks. Financial risks

are risks arising from financial instruments to which the Group is exposed during or at the end of the

reporting period. Financial risk comprises market risk (including currency risk, interest rate risk and other

price risk), credit risk and liquidity risk. The primary objectives of the financial risk management function

is to establish risk limits, and then ensure that exposure to risks remains within these limits.

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Risk management is overseen by the Managers with advice from the Venture Advisor. The Venture

Advisor cooperates closely with all of the Group’s operating units and third party advisors.

a. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate

because of changes in market prices. The Group’s market risks may arise from open positions in foreign

currencies and interest-bearing assets and liabilities, to the extent that these are exposed to general and

specific market movements.

The Group seeks to manage Market risk, principally, by seeking to fix future interest payments in advance.

During the period ending 31 December 2018, the Group has minimal exposure to interest rate risks.

The Group’s main currency exposures are Polish Zlotys and Czech Crowns. The Group’s balance sheet

translation exposure is as follows:

Gross currency assets: €9,776k

Gross currency liabilities: €11,554k

Net exposure: €1,778k

The blended sensitivity of the net assets of the Group to a 5% change in the value of the Euro against the

relevant currencies is €94k.

b. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in

financial loss to the Group. Potential customers are evaluated for creditworthiness and where necessary

collateral is secured. There is no concentration of credit risk within the lease portfolio to either business

sector or individual company as the Group has a diverse customer base with no one customer accounting

for more than 5% of rental income. Trade receivables (which include unpaid rent and amounts receivable in

respect of property disposals) were approximately 1% of total assets at 31 December 2018. The Managers

are of the opinion that the credit risk associated with unpaid rent is low. In excess of 80% of rent due is

generally collected within 21 days of the due date. Trade receivables are actively monitored and collection

pursued to ensure that the Group has minimal exposure to credit risk.

An analysis of the Group’s trade receivables can be found in Note 10.

Investment in financial instruments is restricted to banks and short-term liquidity funds with a good credit

rating.

The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the

aggregate value of transactions concluded is spread among approved counterparties.

c. Liquidity risk

Ultimate responsibility for liquidity risk management rests with the Managers, who have built an

appropriate liquidity risk management framework for the management of the Group’s short, medium and

long-term funding and liquidity management requirements. The Group manages liquidity risk by having a

policy that requires that adequate cash and committed bank facilities remain available to cover and match

all debt maturities, development spend, trade related and corporate cash flows forward over a rolling 18-

month period. This is achieved by continuously monitoring forecast and actual cash flows and matching the

maturity profiles of financial assets and liabilities. Details on current financing facilities are provided in

Note 12.

Current assets and liabilities are deemed receivable / payable within one year and are, therefore, carried at a

value equal to their nominal value including accrued interest.

Bank covenants are monitored on a regular basis and reviewed by the Managers. Long-term liquidity risks

are monitored and reviewed annually by the Managers whilst financing and the Group’s financial strategy

is reviewed and updated annually in conjunction with the Group’s long-term business model.

Details of the maturity of long-term payables is shown within Note 12.

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Cash flows and fair value interest rate risk

Interest from bank loans and bonds within the Group are fixed and known in advance with the exception of

the Revolving Credit Facility which carries a variable coupon rate as of 31 December 2018, if interest rates

had been 200 basis points higher, with all other variables held constant, post-tax profit for the year would

have been €1,143k lower. If interest rates had been 200 basis points lower, with all other variables held

constant, post-tax profit for the year would have increased by €615k.

Operational risks

The Group is mainly exposed to Operational risk through the fair value movements in property values

which are classified in the Consolidated Statement of Financial Position at fair value through consolidated

income statement. To manage this risk, arising from investments in property, the Group diversifies its

portfolio, seeks to maintain financially sound tenants on long leases and maintains a prime portfolio in

areas and functions of high demand. Diversification of the portfolio is maintained in accordance with the

limits set out in the Shareholders Agreement. The Group targets a geographically diverse portfolio with a

20-40% allocation to Germany, France and Poland, a 5-15% allocation to Benelux, a 0-10% allocation to

Czech Republic, Spain and Italy.

3. Total Revenue

Total revenue is comprised of:

4. Property operating expenses

Property operating expenses are comprised of:

1 Venture Performance fees are payable to SELP Management Limited based on the IRR, of the Group,

subject to certain hurdle rates (see Note 20). The first calculation and payment date was due on the fifth

anniversary of the Venture in October 2018 being €59.3 million (including the amount subject to clawback)

of which €29.6 million has been expensed during the period.

2018 €’000s

2017 €’000s

Rental income from investment properties

167,674 155,222

Surrender premiums 97 580

Gross rental income 167,771 155,802

Property management fees 2,743 2,670

Service charge income 49,548 45,293

Total revenue 220,062 203,765

2018 €’000s

2017 €’000s

Vacant property costs

(2,018) (1,490)

Service charge (47,440) (42,781)

Venture and asset management fees

(15,647) (14,255)

Venture performance fee1 (29,629) -

Letting, marketing, legal and professional fees (2,896) (2,455)

Bad debt expense (886) (488)

Other expenses (7,588) (6,833)

Property administration expenses 232 (83)

Total property operating expenses (105,872) (68,385)

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5. Administration expenses

Administration expenses are comprised of:

Auditor’s remuneration includes remuneration in relation to non-audit related services: Total non-audit fees

were €170k in 2018 (2017: €75k). During the period the Group employed an average of three employees

(2017: two).

6. Realised and unrealised property gains from investment properties

1Properties sales can take the form of a direct asset disposal or an indirect disposal through a corporate sale.

The Group sold property owning subsidiaries in Poland and Belgium during the period (see Note 22).

7. Finance costs

Finance costs are comprised of :

2018 €’000s

2017 €’000s

Administration expenses

(2,988)

(2,014)

Administration expenses include:

Auditor’s remuneration (699) (455)

Staff costs (177) (110)

Investment Properties 2018 €’000s

2017 €’000s

Profit on sale of investment properties1

16,075 847

Unrealised gain/(losses) on investment properties

211,260 175,057

Total realised and unrealised property gains 227,335 175,904

2018 €’000s

2017 €’000s

Finance costs

Interest on loans

(18,105) (14,186)

Interest on shareholder and related party loans (16,557) (30,897)

Exchange (loss)/gain (565) 417

Refinancing costs - (4,199)

Total borrowing costs (35,227) (48,865)

Less amounts capitalised on the development of properties 1,804 1,655

Net finance costs (33,423) (47,210)

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8. Corporate current and deferred taxes

8(a) Tax on profit:

Factors affecting tax charge for the year:

The standard rate of taxation applied is 26.01% (2017: 27.08%) which is the applicable rate of corporation

tax in Luxembourg.

8(b) Deferred Taxes:

Balance 1

January

Exchange Movement

Acquisition/ disposal

Recognised in income

Balance 31 December

2018 €'000s €'000s €'000s €'000s €'000s

Valuation surpluses and deficits on properties

78,599 1,350 (10,962) 28,218 97,205

Accelerated tax allowances 39,290 (540) (3,789) 4,299 39,260

Deferred tax asset on revenue losses (2,674) - 700 (600) (2,574)

Other 2,520 (500) 147 979 3,146

117,735 310 (13,904) 32,896 137,037

Balance 1

January

Exchange Movement

Acquisition/ disposal

Recognised in income

Balance 31 December

2017 €'000s €'000s €'000s €'000s €'000s

Valuation surpluses and deficits on properties

56,299 100 – 22,200 78,599

Accelerated tax allowances 33,741 49 (300) 5,800 39,290

Deferred tax asset on revenue losses (2,672) (2) – – (2,674)

Other 1,552 2 – 966 2,520

88,920 149 (300) 28,966 117,735

2018 €’000s

2017 €’000s

Current tax

Current tax charge (8,353) (7,804)

Total current tax (charge)/credit (8,353) (7,804)

Deferred tax

Origination and reversal of temporary differences (4,299) (5,800)

Released in respect of property disposals in the year - 300

On valuation movements (28,218) (22,200)

Total deferred tax in respect of investment properties

(32,517) (27,700)

Other deferred tax (379) (966)

Total deferred tax charge (32,896) (28,666)

Total tax charge on profit on ordinary activities (41,249)

(36,470)

2018 €’000s

2017 €’000s

Profit on ordinary activities before tax 305,114 262,060

Multiplied by standard rate of corporation tax (79,360) (70,966)

Exempt OPCI and REIF on income and gains 30,932 27,592

Non-deductible items 2,499 (3,266)

Different tax rates on international earnings 6,271 9,188

Permanent differences - 199

Adjustments in respect of earlier years and assets not recognised (1,591) 783

Total tax charge on profit on ordinary activities (41,249) (36,470)

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9. Investment properties

Movements in the period were as follows:

Investment properties are stated at fair value as at 31 December 2018 based on external valuations

performed by professionally qualified valuers. The Group’s property portfolio was valued at 31 December

2018 by CBRE Ltd. The valuations conform to the RICS International Valuation Standards and were

arrived at by reference to market evidence of the transaction prices paid for similar properties. In

estimating the fair value of the properties, the highest and best use of the properties is their current use.

There has been no change to the valuation technique during the year.

CBRE Ltd also undertake other professional and agency work on behalf of the Group, although this is

limited in relation to the activities of the Group as a whole. CBRE Ltd advise that the total fees paid by the

Group represent less than 5% of their total revenue in any year.

Completed properties include buildings that are occupied or are available for occupation. Development

properties include land available for development and land under development where construction in

progress. Included in investment properties is land held for development or under construction of

€297,585k (€200,138k in 2017). During the period €1,804k (€1,655k in 2017) of interest has been

capitalised, within additions to existing investment properties.

All amounts included within Total Revenue in the Consolidated Income Statement are derived from all

properties, excluding land, which are income generating investments. Bank borrowings, with the exception

of the Group’s Revolving Credit Facility and issued bonds are secured on investment property.

Property valuation techniques and related quantitative information

All of the Group’s properties are level 3, as defined by IFRS 13, in the fair value hierarchy as at 31

December 2018 and there were no transfers between levels during the year. Level 3 inputs used in valuing

the properties are those which are unobservable, as opposed to level 1 (inputs from quoted prices) and level

2 (observable inputs either directly, i.e. as prices, or indirectly derived from prices).

Based on a multi-criteria approach, the following valuation techniques can be used for the same class of

assets:

The yield methodology valuation technique is used when valuing the Group’s assets which uses market

rental values capitalised with a market capitalisation rate. The resulting valuations are cross-checked

against the initial yields and the fair market values per square metre derived from actual market

transactions.

For properties under construction and land held for development, properties are valued using an investment

method and deducting the estimated cost to complete the property, which can be considered as similar to

the residual valuation method. Under this methodology, the valuer assesses the investment value (using the

2018 €’000s

2017 €’000s

At 1 January 2,834,445 2,472,499

Investment property acquisitions 366,108 183,255

Investment property disposals (100,572) (56,969)

Additions to existing investments properties 162,986 113,400

Revaluation surplus during the year 211,260 175,057

Investment properties held for sale - (54,757)

At 31 December 3,474,227 2,832,485

Straight-lining of lease incentives and letting fees 4,508 1,960

Total investment properties 3,478,735 2,834,445

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above mentioned methodology for completed buildings). Deductions are then made for the total estimated

costs to complete, including notional finance costs and developer’s profit, to take into account the

hypothetical purchaser’s management of the remaining development process and their perception of risk

with regard to construction and the property market (e.g. as regards potential cost overruns and letting risk).

Land values are cross-checked against the rate per hectare derived from actual market transactions.

An increase/decrease to Expected Rental Value (ERV) will increase/decrease valuations, while an

increase/decrease to yield decreases/increases valuations. Similarly an increase in investment yield would

decrease property values whilst a decrease in yields would increase the value of the property portfolio : A

5% increase in investments yields would result in a €159 million decrease in property values whilst a 5%

decrease in investment yields would result in a €159 million increase in property values.

There are interrelationships between all these inputs as they are determined by market conditions. The

effect of an increase in more than one input would be to magnify the input on the valuation. The impact on

the valuation will be mitigated by the inter-related movement of two inputs in opposite directions, e.g. an

increase in rent may be offset by an increase in yield.

The Group’s property assets are insured by AON. In case of damage or destruction of the Group’s assets,

each property is fully insured to the replacement and rebuild value of each asset. In addition, the Group is

insured for loss of rent and income for a maximum period of four years following a catastrophe.

VALUATION

INPUTS

Completed

Land and Developments

Total

ERV

ERV Range

Net True Equivalent

Yield

Net True Equivalent

Yield Range

€000s €000s €000s € per sq m € per sq m % %

By building type

Logistics Warehouse 3,181,150 297,585 3,478,735 50.5 36-108 5.60% 4.5-7.0

Group total 3,181,150 297,585 3,478,735 50.5 36-108 5.60% 4.5-7.0

VALUATION

INPUTS

Completed

Land and Developments

Total

ERV

ERV Range

Net True Equivalent

Yield

Net True Equivalent

Yield Range

€000s €000s €000s € per sq m € per sq m % %

By Geography

Germany 923,005 114,255 1,037,260 55.0 36-81 5.04% 4.5-7.0

France 754,060 22,125 776,185 52.1 41-93 5.29% 5.5-7.3

Poland 741,945 44,365 786,310 44.0 36-108 6.63% 6.2-7.0

Czech Republic 149,885 9,850 159,735 56.1 36-102 6.04% 5.6-6.2

Netherlands 178,750 14,565 193,315 63.3 76-101 5.44% 4.9-5.7

Spain 41,625 92,425 134,050 62.0 54-67 5.00% 5.00

Italy 391,880 - 391,880 47.3 38-78 5.47% 4.8-6.4

Group Total 3,181,150 297,585 3,478,735 50.5 36-108 5.60% 4.5-7.0

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10. Trade and other receivables

Trade and other receivables are comprised of :

Other receivables include €82.8 million of VAT paid in respect of property acquisitions (2017: €25.9

million) in Italy, France and Spain.

The Group applies the IFRS 9 simplified approach to measuring expected credit losses (‘ECLs’) which uses

a lifetime expected loss allowance for all trade receivables. The adoption of IFRS 9 did not result in a

material change in the loss allowance and impairments recognised under IFRS 9 compared to that held

under IAS 39.

The €26,401k trade receivables relate to a number of independent customers for whom there is no recent

history of default or whose balance as at 31 December 2018 are fully covered by bank guarantee or deposit.

A total of €1,696k of outstanding debts has been provisioned where these sums relate to tenants with

amounts outstanding on leases where the Group believes that recovery of these amounts is unlikely.

As at 31 December 2018, the Group’s trade receivables denominated over time were:

Total Current < 1 Month < 2 Month <3 Month >3 Months

26,401 18,671 4,823 627 450 1,830

Trade receivables as at 31 December 2017 were:

Total Current < 1 Month < 2 Month <3 Month >3 Months

29,139 22,110 1,941 991 1,713 2,384

11. Cash and cash equivalents

2018 €’000s

2017 €’000s

Trade receivables 26,401 29,139

Loss allowance (1,696) (1,990)

Net trade receivables 24,705 27,149

Service charge receivables 6,428 4,959

Other receivables 98,371 40,798

Tenant deposits 9,210 8,616

Prepayments 31,938 5,833

Total current trade and other receivables 170,652 87,355

2018 €’000s

2017 €’000s

Unrestricted bank balances 50,189 45,004

Total cash and cash equivalents 50,189 45,004

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12. External borrowings

(a) The Group’s borrowings as at 31 December 2018 are summarised as follows:

The main features of the Group’s outstanding facility are detailed below :

Facility Facility Amount Interest Rate Maturity

Listed Guaranteed Bond €500,000,000 fixed term Fixed 1.25% 22 October 2023 (7 year bond)

Listed Guaranteed Bond €500,000,000 fixed term Fixed 1.50% 20 November 2025 (8 year bond)

Revolving Credit Facility €300,000,000 revolving facility Variable 22 October 2022 (4 year facility)

Deka – Germany €59,100,000 term loan Fixed 1.28% 23 September 2020 (5 year facility)

During 2018, there were no breaches of the financial covenants which could invoke foreclosure on any of the

facilities.

The Revolving Credit Facility was increased from €200m to €300m in December 2018 whilst the option to

extend the maturity of the facility from October 2021 to October 2022 was taken in November 2018.

Financial instruments and fair values

Categories of financial instruments

For financial reporting purposes, fair value measurements are categorised into level 1, 2 or 3 based on the

degree to which the inputs to the fair value measurements are observable and the significance of the inputs to

the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the

entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the

asset or liability, either directly or indirectly ; and

• Level 3 inputs are unobservable inputs for the asset or liability.

The fair value of financial asset held by the Group is the current bid price. The carrying value less loss

allowance of trade receivables and payables are assumed to approximate to their fair values. The level 2 fair

value of financial assets and liabilities for disclosure purposes is estimated by discounting the future

contractual cash flows at the current market interest rate that is available to the Group for similar financial

instruments.

2018 €’000s

2017 €’000s

Unsecured borrowings:

2023 Maturity Bond 500,000 500,000

2025 Maturity Bond 500,000 500,000

Revolving Credit Facility 195,000 –

Secured borrowings:

Bank loans 59,100 59,100

Total 1,254,100 1,059,100

Loan Arrangement Fee:

Balance at 1 January (11,732) (7,596)

Capitalised in the Year (770) (6,091)

Written off in the Year - 269

Straight lining effect of amortised costs 2,017 1,686

(10,485) (11,732)

Balance at 31 December 1,243,615 1,047,368

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All financial assets and liabilities (except cash and cash equivalents, which are classified as level 1) are

classified as level 2. Fair Value

2018 Book Value

2018 Fair Value

2017 Book Value

2017 Financial assets €'000s €'000s €'000s €'000s

Trade and other receivables 55,877 55,877 55,600 55,600

Financial liabilities

External borrowings (1,225,784) (1,243,615) (1,060,606) (1,047,368)

Related party borrowings (605,712) (385,628) (529,019) (385,728)

Trade and other payables (94,191) (94,191) (76,577) (76,577)

Other Long-Term Creditors represent Shareholder Loans held between the Group and the Group’s

shareholders and loans between the Group and Alpha Holdings S.à r.l., a related party.

Capital management

The Group manages its capital requirements to ensure that entities in the Group will be able to continue as a

going concern and as such the Group aims to maintain a prudent mix between debt and equity financing. The

current capital structure of the Group consists of a mix of equity and debt. Equity comprises issued capital,

reserves and retained earnings as disclosed in the Consolidated Statement of Changes in Equity and Notes 13.

Debt primarily comprises long-term debt issues and drawings against medium-term committed revolving

credit facilities from banks as disclosed in Note 12.

The Group has one secured bank facility in place. The German Bravo facility is repayable on 23 September

2020. These bank borrowings are secured against a discrete portfolio of properties. The Group is not

applying hedge accounting and does not use derivative financial instruments.

The debt facilities contain covenants. Compliance with these covenants is monitored on a quarterly basis. All

covenants were fully complied with throughout the period to 31 December 2018.

The loan to value ratio for the Group’s secured bank facility at 31 December 2018 was as follows:

The Group’s assets are revalued by CBRE Ltd bi-annually to ensure the asset’s values are accurately

reflected whilst bank valuations are undertaken at the discretion of the lending institution(s). The banks’

valuers apply criteria and assumptions that may not reflect the prevailing market conditions: As a result the

bank valuations may differ from those made by CBRE Ltd on behalf of the Group.

The 2023 and 2025 guaranteed bonds have two key covenants: Loan to Value should not exceed 60% and

Interest Cover Ratio that shall not fall below 1.5:1. Currently the Group’s LTV as per the bonds’ covenant

calculation stands at 34% whilst ICR is 8.4:1.

(b) Related party borrowings are comprised of :

Shareholder Loans have been accounted for at amortised cost, their fair value was disclosed within Note

12(a).

Germany €’000s

Total Secured €’000s

Investment Property Market Value 162,381 162,381

Gross Borrowings 59,100 59,100

Loan to Value 36% 36%

2018 €’000s

2017 €’000s

Shareholder loans 377,961 377,364

Amounts due to related parties 7,666 8,364

Total related party borrowings 385,627

385,728

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(c) Trade and other payables

13. Share capital and share premium

(a) Share capital

As at 31 December 2018, the share capital is comprised as follows :

The share capital consists of 17,400 shares (authorised and issued) of €1 nominal value. All issued shares are

fully paid. During the year the Group issued 100 shares.

(b) Share premium

As at 31 December 2018, the share premium is comprised as follows :

During the year the Group issued 100 shares with a nominal value of €1 each; the shares were issued at a

premium of €125,230k.

2018 €’000s

2017 €’000s

Due after one year

Trade payables 5,502 4,023

VAT payable 5,172 864

Rent in advance 15,864 16,189

Accruals 17,428 15,963

Capital accruals 24,395 18,152

Accrued interest payable on bank loans 2,367 2,115

Other liabilities 26,644 21,629

Accrued interest on shareholder and related party loans 3,626 7,345

Shareholders Payables 9,008 6,486

Total trade and other payables 110,006 92,766

Issue and fully paid PSP Britannia Limited

SEGRO Luxembourg S.à r.l.

Total

Totals

€’000s €’000s €’000s €’000s

Ordinary shares of €1 at 1 January 8.65 8.65 17.30

Issued of shares 0.05 0.05 0.10

Ordinary shares of €1 at 31 December 8.70 8.70 17.40

PSP Britannia Limited

SEGRO Luxembourg S.à r.l.

Total

Totals

€’000s €’000s €’000s €’000s

Balance at 1 January 224,115 224,115 448,230

Premium arising on the issue of shares 62,615 62,615 125,230

Balance at 31 December 286,730 286,730 573,460

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14. Capital commitments

Contractual obligations to purchase, construct, develop, repair, maintain or enhance assets as at 31 December

2018 were €62.2 million (2017: €46.6 million) and mainly relates to the Group’s development projects in

Germany, Spain and Poland.

15. Operating leases

The Group as lessor

The future aggregate minimum rental amounts receivable under non-cancellable operating leases are as

follows:

The Group as lessee

The Group has entered into lease arrangement for which the future aggregate amounts payable are as

follows:

16. Related party transactions

Transactions between the Group and its related parties were comprised of:

Interest is paid to both shareholders whilst Venture, Administration, Property Management Fees, Performance

Fee and Development Management Fees were paid to SELP Management Limited, a SEGRO plc group

company, acting as Venture Advisor to the Group.

2018 €’000s

2017 €’000s

Not later than one year 172,215 144,809

Later than one year, not later than five years 516,300 446,786

Later than five years 311,399 269,128

999,914 860,723

2018 €’000s

2017 €’000s

Not later than one year 1,636 382

Later than one year, not later than five years 5,290 1,912

Later than five years 2,294 2,294

9,220 4,588

2018 €’000s

2017 €’000s

Dividends paid 41,175 7,187

Interest expense 16,557 30,897

Venture, administration and property management fees 15,647 14,255

Venture performance fee 59,258 -

Development management fees 4,955 3,677

137,592 56,016

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Significant balances outstanding between the Company and related parties are shown below:

None of the above balances are secured. All of the above transactions are made on terms equivalent to those

that prevail in arm’s length transactions.

Trade and other payables relate to management fees due to SELP Management Limited, a SEGRO Group

company in relation to Venture Advisor and related management fees.

The beneficial owners of Alpha Holdings S.à r.l. are PSP Britannia Limited and SEGRO Luxembourg S.à r.l.

SEGRO Luxembourg S.à r.l. is a wholly owned subsidiary of SEGRO plc whilst PSP Britannia Limited is a

wholly owned subsidiary of the PSP Investment Group.

17. Cash flow statement

Analysis of financial liabilities and assets arising from financing activities :

2018 €’000s

2017 €’000s

Shareholder Loans SEGRO Luxembourg S.à r.l. 188,981 172,278

Shareholder Loans PSP Britannia Ltd 188,981 172,278

Loan Notes SEGRO plc

- 16,404

Loan Notes PSP Britannia Ltd

- 16,404

Accrued Interest Payable to SEGRO Luxembourg S.à r.l.

1,804 3,672

Accrued Interest Payable to PSP Britannia Ltd

1,804 3,672

Trade and Other Payables to Related Payables

9,008 6,486

Related Party Loans Alpha Holdings S.à r.l.

7,666 8,364

398,244 399,558

2018 €’000s

2017 €’000s

Reconciliation of cash generated from operations

Operating Profit 338,537

309,270

Adjustments for:

Rent straight-lining and letting fees (4,508) (1,960)

Profit on sale of investment properties (16,075) (847)

Revaluation surplus on investment and owner occupied properties (211,260) (175,057)

Changes in working capital:

Increase in debtors (83,298) (20,390)

Increase in creditors 9,932 3,037

Net cash flow from operations 33,328 114,053

Cash Flow Non-Cash Adjustments

As at 1 January Additional

Redeemed/Repaid Total Written off Amortisation As of 31 December

€'000s €'000s €'000s €'000s €'000s €'000s €'000s

Bank loans and loan capital

1,059,100 195,000 - 1,254,100 - - 1,254,100

Capitalised finance costs (11,732) (770) - (12,502) - 2,017 (10,485)

Total borrowings 1,047,368 194,230 - 1,241,598 - 2,017 1,243,615

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18. Managers remuneration

Managers’ remuneration is not borne by the Group and is borne by the Group’s shareholders.

19. Subsequent events

The Group entered into contractual arrangements to purchase a 28,400 sq m building located in Barcelona,

Spain for a total consideration of €26.8m.

On 1 January 2019 the Group restructured the Czech property owning entities via merger. The entities listed

below were merged:

Previous Entity Name Merged Entity Name

Secor Estates, sro Delta Tulipan Park, sro

Alpha Tulipan Park, sro Delta Tulipan Park, sro

Beta Tulipan Park, sro Delta Tulipan Park, sro

Gamma Tulipan Park, sro Delta Tulipan Park, sro

Pambrook International, sro Dani Estates, sro

Gront Three, sro GRONT Five, sro

20. Contingent Liabilities

Under the terms of the Venture Advisor Agreement a Performance Fee will be payable to SELP Management

Ltd should the IRR of the Group exceed 9% after five years. Should the IRR exceed this target a total

equivalent to 10% of the outperformance will be payable in Performance Fees. Should the IRR exceed 10%,

at this date, a total of 20% of the outperformance of the return in excess of 10% IRR will be payable to SELP

Management Ltd.

After ten years a Performance Fee will be calculated based on the ten year IRR of the venture. Should the

IRR exceed 9%, a total equivalent to 10% of the outperformance will be payable in Performance Fees.

Should the IRR exceed 10%, at this date, a total of 20% of the outperformance of the return in excess of 10%

IRR will be payable to SELP Management Limited. If the IRR of the venture after ten years exceeds the

target of 9% or 10% but is inferior to the IRR after five years, up to 50% of any Performance Fee paid at the

five years anniversary, in excess of the total due after ten years, will be repaid to the Group by SELP

Management Limited.

The first fee paid by SELP on the fifth anniversary falling in October 2018 was €59.3 million (including the

amount subject to clawback). A Performance Fee expense of €29.6 million has been recognised as a property

management expense in the 2018 Consolidated Income Statement and represents the estimated IRR and final

settlement of the Performance Fee due at the 10 year anniversary. The remaining €29.6 million of the total fee

paid and not recognised as an expense has been recognised as a prepayment (see Note 10) on the

Consolidated Statement of Financial Position as at 31 December 2018.

Management estimates that, based on the position as at 31 December 2018 and estimated IRR, no further

payment is expected to be required upon final settlement of the Performance Fee liability at the 10 years

anniversary in October 2023. The €29.6 million held as a prepayment at 31 December 2018 is expected to be

clawed back and repaid by SELP Management Limited after ten years.

It should be noted that it is difficult to estimate the total Performance Fee that may be payable after 10 years

due to the geared nature of the calculation which is based on absolute performance above a fixed hurdle, and

hence is very sensitive to changes in the assumptions applied to the calculation. It remains possible that some

or all of the €29.6 million, currently held as a prepayment, may be clawed back and also that additional

performance fee, above €59.3 million already paid, may fall due.

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21. Segmental Analysis

The Group considers that the geographic location of the Group’s assets is an appropriate measure of the

Group’s business activities.

2018 2017

Northern Europe

Southern Europe

Central Europe Total

Northern Europe

Southern Europe

Central Europe Total

€'000s €'000s €'000s €'000s €'000s €'000s €'000s €'000s

Total Revenue 73,883 67,407 78,772 220,062 70,885 61,088 71,792 203,765

Net Income 37,581 47,131 29,478 114,190 52,220 41,641 41,519 135,380

Operating Profit 128,826 135,124 74,587 338,537 132,013 116,905 60,352 309,270

22. Scope of consolidation

The Company fully consolidates all subsidiaries in accordance with the accounting policies detailed above.

During the year the Company held the following subsidiaries:

Country Company Address 2018 2017

Luxembourg SELP Finance S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Investments S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (France) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Germany and Benelux) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Belgium) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Bravo Germany) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Charlie Germany) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Alpha Germany) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg Link S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 50.63% 50.63%

Luxembourg SELP (Spain) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Italy) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Poland and Czech Republic)

S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (CR) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg

SELP (Alpha Czechia) S.à r.l.

(formerly SELP (Alpha Poland) S.à r.l.)

35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Delta Spare 1) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Delta Spare 2) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Delta Spare 4) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Delta Spare 5) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Krefeld 3) S.à r.l. (formerly

Delta Spare 6 S.à r.l.) 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Leipzig GP S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 50.63% 50.63%

Luxembourg SELP Berlin GP S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 50.63% 50.63%

Luxembourg SELP Ingolstadt GP S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 50.63% 50.63%

Luxembourg SELP (Alzenau) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Hamburg Pinkertweg) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Hamburg Winsen) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Kapellen) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Krefeld) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (MG Logistik) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

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Luxembourg SELP (Neuss) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Oberhausen) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Krefeld II) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Bischofsheim I) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Bischofsheim II) S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Berlin 2) S.à r.l. (formerly

SELP (Bravo Spare 2) S.à r.l.) 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Alzenau 2) S.à r.l. (formerly

SELP (Charlie Spare 2) S.à r.l.) 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Leipzig S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Hamburg S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 53.13% 53.13%

Luxembourg SELP Überherrn S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 53.13% 53.13%

Luxembourg SELP Berlin S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 50.63% 50.63%

Luxembourg SELP Ingolstadt S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 50.63% 50.63%

Luxembourg SELP (Munich) S.à r.l. (formerly

SELP Echo 1 S.à r.l.) 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Oberhausen 2 S.à r.l. (formerly

Echo 2 S.à r.l.) 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP (Krefeld 4) S.à r.l. (formerly

SELP Echo 3 S.à r.l.) 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Spare 1 S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Spare 2 S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Spare 3 S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Spare 4 S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

Luxembourg SELP Spare 5 S.à r.l. 35-37 av. de la Liberté, 1931 Luxembourg 56.25% 56.25%

France LPV France SPPICAV 173 Boulevard Haussman, 75008 Paris 56.25% 56.25%

France Comete Developpement S.à r.l. 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SEGRO Logistics SAS 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SELP Marinière SAS 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SELP Marly SAS 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SELP Saint-Ouen SAS 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SEGRO (Aulnay) SCI 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SCI Boussard A 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SCI Boussard C 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SCI SELP Mitry 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SCI SELP Clesud 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SELP Fallavier (SCI) 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SELP Nimes (SCI) 20 rue Brunel, 75017 Paris 56.25% 56.25%

France SELP Pusignan Auriol SCI 20 rue Brunel, 75017 Paris 56.25% 56.25%

Germany SELP Leipzig Logistik I GmbH Fichtenstrasse 33, 40233 Düsseldorf 56.25% 56.25%

The Netherlands SEGRO (Hoofddorp) BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam 56.25% 56.25%

The Netherlands SELP Herford 1 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Herford 2 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Herford 3 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Herford 4 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA Amsterdam

53.12% 53.12%

The Netherlands SELP Herford 5 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Herford 6 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA Amsterdam

53.12% 53.12%

The Netherlands SELP Neuenstadt 1 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Neuenstadt 2 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA Amsterdam

53.12% 53.12%

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The Netherlands SELP Neuenstadt 3 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Malsfeld 1 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Malsfeld 2 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Herbrechtingen BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Saarwellingen 1 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Saarwellingen 2 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Saarwellingen 3 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Leipzig 1 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SELP Leipzig 2 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam

53.12% 53.12%

The Netherlands SEGRO (Tilburg I) BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam 56.25% 56.25%

The Netherlands SEGRO (Tilburg II) BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam 56.25% 56.25%

The Netherlands SELP Hoofddorp 2 BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA Amsterdam

56.25% 56.25%

The Netherlands SELP Netherlands (Holdings) BV Gustav Mahlerplein 62 , Ito-toren, 8th Floor, 1082 MA

Amsterdam 56.25% 56.25%

Poland Aspen Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Branford Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Cambrilis Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Florette Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Galtic Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Karafiat House Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Keila Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Losette Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Lumina Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Nadarzyn Industrial Park Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Oriolus Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Quendis Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Eduardo Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Jolie Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Pruszkow Industrial Park Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Ottoline Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Tala Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Collbert Investments Sp Zoo. Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Dearing Investments sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Goluski Sp Zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland Corin Investments Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Poland SELP Delta Sp zoo Pl. Andersa 3, 61-894 Poznań 56.25% 56.25%

Czech Republic Secor Estates, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Delta Tulipan Park, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Alpha Tulipan Park, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Beta Tulipan Park, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Gamma Tulipan Park, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic GrontFive, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic GRONT CR, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Dani Estates, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Pambrook International, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

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SEGRO European Logistics Partnership S.à r.l.

Registered in Luxembourg N°: B177300 Page 45

Czech Republic Gront Three, sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Air 6 Park a.s. Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic GrontOne sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic GrontTwo sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Czech Republic Grontinfra sro Praha 1, Na Prikope 91392 a 111393, PSC110 00 56.25% 56.25%

Italy Logita REAIF via Valtellina 15/17, 20159 Milan 56.25% 56.25%

Spain SELP Martorelles 1 (formerly known

as Coslada 1) S.L. Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% 56.25%

Spain SELP Spain Getafe 1 (formerly known

as Spare 1 S.L.)

Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% 56.25%

Spain SELP Spain Mollet 1 (formerly known

as Spare 2 S.L).

Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% 56.25%

Spain SELP Spain Martorelles 2 (formerly

known as Spare 3 S.L.)

Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% 56.25%

Spain SELP Spain San Fernando 1 (formerly

known as Spare 4 S.L.)

Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% 56.25%

Spain SELP Spain Sant Esteve1 (formerly

known as Spare 5 S.L.)

Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% 56.25%

During the year the Company incorporated the following entities:

Country Company Address 2018 2017

Spain SELP Spain Spare 6, S.L Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% N/A

Spain SELP Spain Spare 7, S.L Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% N/A

Spain SELP Spain Spare 8, S.L Avenida Diagonal, 467, 6020, 08036 Barcelona 56.25% N/A

The Netherlands SELP Venray BV Gustav Mahlerplein 62 B, Ito Toren, 1082 MA Amsterdam 56.25% N/A

During the year the Company disposed of the following entities:

Country Company Address Date of Sale

Poland Junius Sp Zoo Pl. Andersa 3, 61-894 Poznan 30/05/18

Belgium Panton Kortenberg Vastgoed NV Louizalaan 331-333, 1050 Brussels 26/10/18

Belgium Pakobo NV Louizalaan 331-333, 1050 Brussels 26/10/18

Belgium Rumst Logistics I NV Louizalaan 331-333, 1050 Brussels 26/10/18

Belgium Rumst Logistics II NV Louizalaan 331-333, 1050 Brussels 26/10/18

Belgium Rumst Logistics III NV Louizalaan 331-333, 1050 Brussels 26/10/18