SEGRO European Logistics Partnership S.à...
Transcript of SEGRO European Logistics Partnership S.à...
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 1
SEGRO European Logistics Partnership
Société à responsabilité limitée
Registered in Luxembourg No: B177300 Subscribed Share Capital: EUR 17,300
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF THE
RÉVISEUR D´ENTREPRISES AGRÉÉ
AS AT AND FOR THE YEAR ENDED
31 DECEMBER 2017
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 2
CONTENTS
Shareholders, advisers and other information
3
Managers’ report
4
Corporate governance statement 9
Managers’ responsibilities statement
12
Report of the reviseur d’entreprises agrée
13
Consolidated income statement
Consolidated statement of comprehensive income
17
18
Consolidated statement of financial position
19
Consolidated statement of changes in equity
20
Consolidated statement of cash flows
21
Notes to the consolidated financial statements
22
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 3
SHAREHOLDERS, ADVISERS 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
Auditor
PwC Société coopérative
2, rue Gerhard Mercator
B.P. 1443
L-1014 Luxembourg
LUXEMBOURG
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Registered in Luxembourg No: 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 2017
(“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 owned by SEGRO plc Group (“the SEGRO Group”) through its subsidiary SEGRO Luxembourg S.à r.l.
and PSP Investment Group through its 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.
MARKET OUTLOOK
European commercial property markets have continued to perform well throughout 2017 with prime yields continuing
to tighten in the Group’s key markets. Competition for well-located assets in core markets continues despite
historically low investment yields. Capital allocations towards commercial real estate remains strong with reports of
record levels of capital allocated to but not yet invested in real estate. The year has seen a number of platform deals
completed, where operational platforms as well as logistics investment portfolios have been traded and this reflects the
desire of some investors to acquire both operational skills and logistics portfolios in a market where scale is becoming
increasingly important.
Occupier demand remains strong across Europe, although rental value growth remains muted where supply is keeping
pace, and is expected to remain so into 2018. The Group’s key markets have enjoyed continued low vacancy rates
throughout 2017.
Development of new stock is becoming an increasingly important element of many logistics investors’ portfolios, with
strong demand for pre-let and build-to-suit warehouses, and a number of speculative development schemes letting up
during construction.
In this context the outlook for European logistics assets remains stable.
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KEY PERFORMANCE INDICATORS
CAPITAL ALLOCATION
At 31 December 2017, the Group held investment properties valued at €2,889 million (2016: €2,472 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 existing land bank.
The portfolio remains anchored by the core markets of France, Germany and Poland although the Group continued to
expand its operations in Italy and Spain. The Group completed its first development in Spain which was let to Amazon
upon completion while in Italy the Group added to its prime portfolio with the acquisition of two modern logistics
buildings in Bologna and Piacenza.
The Group’s portfolio generated a capital value increase of 6.6 per cent in 2017 (2016: 1.9 per cent), reflecting
generally stable rental values and market yields, enhanced by a 14.4 per cent uplift (2016: 14.8 per cent) in the value
of buildings under construction.
The average building age of the portfolio is 8.9 years (2016: 8.9 years) with 69 per cent of the Group’s portfolio being
under ten years old (2016: 70 per cent). 2 per cent of the portfolio is over 25 years old, down from 11 per cent at 31
December 2016. The Group will seek to actively manage the portfolio to maintain a modern portfolio.
PORTFOLIO BY
VALUE
Germany €956m
Poland €732m
France €634m
Benelux €215m
Italy €138m
Czech Republic €128m
Spain €86m
Total €2,889m
PORTFOLIO
VALUATION GROUP HEADLINE
RENT
€2,889m €173m 2016: €2,472m
2016: €160m
PORTFOLIO
VALUATION CHANGE
IFRS PROFIT BEFORE
TAX
+6.6% €262.1m 2016: +1.9% 2016: €94.1m
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Registered in Luxembourg No: B177300 Page 6
ACTIVE ASSET MANAGEMENT
At 31 December 2017, the portfolio generated €173 million of headline rent. This increase from 31 December
2016 (€160 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 38 per cent of
total headline rent. The largest customer, DSV, accounts for 3.0 per cent.
€10.4 million additional headline rent was contracted through completed developments. In addition to the
increased rents from the Group’s existing assets, the Group contracted €10.4 million of headline rent from pre-let
agreements and lettings of speculative developments prior to completion (2016: €6.0 million).
IFRS profit before tax in 2017 was €262.1 million (2016: €94.1 million) principally reflecting higher realised and
unrealised gains in the portfolio. Realised and unrealised gains on investment properties of €175.9 million (2016:
€35.5 million) have been recognised in the consolidated income statement as the value of our portfolio has increased
during the year.
Vacancy remains low at 2.5 per cent (2016: 2.8 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 0.2 percentage points relates to
recently completed speculative developments. The average vacancy rate during the period was 2.5 per cent, which was
in line with 2016 (2.5 per cent).
If short-term lettings were to be treated as vacant space, the vacancy rate would increase to 3.3 per cent (31 December
2016: 3.7 per cent).
High retention rate of 76 per cent and re-letting rate of 97 per cent. Approximately €18.7 million of headline rent
was at risk from break or lease expiries during the period with 76 per cent being retained in existing space. Of the 24
per cent that was not retained, 21 per cent was re-let during the year.
The weighted average lease length of the portfolio at 31 December 2017 was 5.3 years to break (31 December
2016: 5.2 years) and 6.5 years to expiry (31 December 2016: 6.8 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
76% 2.5% 2016: 81%
2016: 2.8%
RE-LETTING
RATE
LOAN TO
VALUE
97% 35% 2016: 92% 2016: 31%
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FUNDING THE PORTFOLIO
The loan to value ratio at 31 December 2017 was 35 per cent. This is an increase from 2016 (31 per cent) in part
due to the increased level of debt in the Group associated with the recent refinancing of the portfolio and issuance of
the Group’s second Eurobond.
As at 31 December 2017 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).
During the year the Group announced the launch and pricing of an eight year €500 million unsecured bond issued and
traded on the Irish Stock Exchange. The bond was priced at 95 basis points above the euro mid-swap rate and has an
annual coupon of 1.5 per cent. The additional funds raised via the second bond issuance were partly applied to the
repayment of €201 million of the Group’s existing secured debt. The portfolio now has 95 per cent of unencumbered
assets.
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 €183 million of assets during 2017, continuing the momentum of 2016 (€257 million).
Germany: The Group acquired two land plots in Munich and Oberhausen in the period. The 21 hectare site in
Oberhausen will allow for 128,000 sq m of logistics space and will be built over five phases, providing approximately
€6.4m of additional annual income. The 2.3 hectare site in Munich will support 12,000 sq m of logistics development
with development commencing in 2018.
France: The Group acquired a single 59,300 sq m logistics asset in close proximity to Lyon St. Exupery airport. The
newly built property supports the strategy of reducing the average building age within the French portfolio.
Poland: The Group acquired a newly built 30,395 sq m warehouse pre-let to Arvato, along with the adjacent land plot
of 18.8 hectares. The acquisition complements the Strykow Park, an existing Group asset, and unites ownership of the
land and buildings.
ACQUISITIONS OF
LAND & ASSETS
DISPOSALS OF
LAND & ASSETS
DEVELOPMENT
COMPLETIONS CURRENT PIPELINE
POTENTIAL RENT
€183m €57m 209,000 sp m €13.9m 2016: €257m
2016: €nil
2016: 133,000 sq m
2016: €9.4m
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ACQUISITIONS (CONTINUED)
Czech Republic: Two small buildings along with an adjacent 29.5 hectares of development land were acquired in
Hostiwice. The acquisition unites ownership of the Hostiwice Park and the acquired land will support 99,000 sq m of
future logistics buildings.
Netherlands: The Group acquired a 1.7 hectare land plot adjacent to the LC1 development site during the period. The
site benefits from the pre-performed infrastructure works, and will support construction of an 11,296 sq m logistics
terrace building.
Spain: The Group acquired four plots of land in Gavilanes, Sant Esteve, San Fernando de Henares and Martorelles.
These locations strengthen the Group’s positions in Barcelona. Two of the sites are already under construction and are
expected to complete in 2018, with all four sites expected to add 147,000 sq m of modern logistics buildings.
Italy: In April 2017 the Group acquired two buildings in Bologna and Piacenza. Both buildings are newly completed
logistics warehouses let on long leases and provide a total of 32,400 sq m of logistics space.
DISPOSALS
Four older, short-let assets were sold in France during 2017. The proceeds will be used to support the Group’s
investment activities in both acquisitions and development.
The Group has agreed terms to dispose a further three assets in Germany in 2018.
DEVELOPMENT ACTIVITY: COMPLETED, CURRENT AND FUTURE
The Group completed 209,000 sq m of new space during 2017, 57 per cent more than in 2016 (133,000 sq m).
These projects were 75 per cent pre-let prior to the start of construction and 96 per cent let as at the end of December
2017, generating €10.4 million of headline rent, with a potential further €0.4 million once the remaining space is let.
As at 31 December 2017, the Group had a current development pipeline of 250,000 sq m that will generate €13.9
million of headline rent. These projects were 44 per cent pre-let as at 31 December 2017.
The portfolio holds a land bank of 240 hectares identified for future development as at 31 December 2017,
equating to €166 million, or around 6 per cent of the Group’s portfolio. The Group invested €98 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.
Mitry Mory, France, development provides 57,000 sq m of space 30,395 sq m asset acquired in Poland pre-let to Arvato
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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 is the standard 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 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, stakeholders and the wider
community.
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.
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.
There have been no changes in the Management Board during the year and the respective members of the Board have
experience in the real estate industry as well as experience as Managers within similar enterprises.
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 26.
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 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 financial statements, the auditor attends the relevant Board meeting when the 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 this role, SELP Management also provides HR 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 2017.
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
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 tight controls, training and raising awareness.
Sustainability
In 2015, the Group, on the recommendation of SELP Management Limited, adopted SEGRO’s sustainability strategy,
‘SEGRO 2020’, for itself and its subsidiaries. SEGRO 2020 focuses on ensuring that building design, new buildings
and refurbishments use resources efficiently, most notably energy and water, and obtain recognised building
certifications such as BREEAM and LEED.
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
SEGRO European Logistics Partnership S.à r.l.
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which 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
PSP Britannia Limited 50%
SEGRO Luxembourg S.à r.l. 50%
As at 31 December 2017 the Company’s issued share capital was 17,300 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 2017:
Name Amount of Share Capital
PSP Britannia Limited 8,650
SEGRO Luxembourg S.à r.l. 8,650
TOTAL 17,300
RESULTS AND DISTRIBUTIONS
The profit for the period amounted to €225,590k (€78,298k in 2016) which include realised and unrealised profits of
€175,904k (€35,460k in 2016) from investment properties. After deduction of the profit attributable to non-controlling
interests, the profit attributable to the Group is €126,127k (€43,518k in 2016).
EMPLOYEES
The Group had an average of two employees in 2017, 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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Registered in Luxembourg No: B177300 Page 12
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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CONSOLIDATED INCOME STATEMENT for the year ended 31 December 2017
Notes 2017 €’000s
2016 €’000s
Income
Total revenue 3 203,765 183,560
Property operating expenses 4 (68,385) (59,891)
Net income 135,380 123,669
Administrative expenses 5 (2,014) (1,761)
Realised and unrealized gains/(losses) from change in fair value of investment properties 6 175,904 35,460
Operating Profit 309,270 157,368
Finance costs 7 (47,210) (63,250)
Net Profit before Tax 262,060 94,118
Corporate current tax 8(a) (7,804) (1,323)
Deferred tax 8(b) (28,666) (14,497)
Net Profit after Tax 225,590 78,298
Attributable to:
Equity Shareholders 126,127 43,518
Non-Controlling Interests 99,463 34,780
225,590 78,298
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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Registered in Luxembourg No: B177300 Page 18
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME for the year ended 31 December 2017
The accompanying notes form an integral part of these consolidated financial statements.
2017 €’000s
2016 €’000s
Profit/(loss) for the year
225,590 78,298
Items that will not be reclassified subsequently to profit or loss – –
Items that may be reclassified subsequently to profit or loss – –
Total comprehensive profit/(loss) for the year 225,590 78,298
Attributable to Equity Shareholders 126,127 43,518
Attributable to Non-Controlling Interests 99,463 34,780
Total comprehensive profit/(loss) for the year 225,590 78,298
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Registered in Luxembourg No: B177300 Page 19
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION As at 31 December 2017
Approved by the Managers on 15 February 2018
The accompanying notes form an integral part of these consolidated financial statements.
Notes 2017 €’000s
2016 €’000s
Assets
Non-current Assets
Investment properties 9 2,834,445 2,472,499
Plant and equipment 42 56
2,834,487 2,472,555
Current assets
Trade and other receivables 10 87,355 66,965
Non-current assets classified as held for sale 9 54,757 –
Cash and cash equivalents 11 45,004 111,466
187,116 178,431
Total assets 3,021,603 2,650,986
Liabilities
Non-current liabilities
External borrowings 12(a) (1,047,368) (872,709)
Related party borrowings 12(b) (385,728) (557,203)
Deferred tax liabilities 8(b) (117,735) (88,920)
(1,550,831) (1,518,833)
Current liabilities
Trade and other payables 12(c) (92,766) (90,366)
(92,766) (90,366)
Total liabilities (1,643,597) (1,609,199)
Net assets 1,378,006 1,041,787
Equity
Share capital 13(a) (17) (17)
Share premium 13(b) (448,230) (381,938)
Retained earnings (318,745) (196,663)
Total equity attributable to owners of the parent (766,992) (578,618)
Non-controlling interests (611,014) (463,169)
Total equity (1,378,006) (1,041,787)
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Registered in Luxembourg No: B177300 Page 20
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY 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/(Loss) for the year – – 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
for the year ended 31 December 2016
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 2016 17 324,670 153,145 477,832 384,564 862,396
Profit/(Loss) for the year – – 43,518 43,518 34,780 78,298
Capital injected – 57,268 – 57,268 43,825 101,093
Dividends paid to ordinary shareholders – – – – – –
Balance as at 31 December 2016 17 381,938 196,663 578,618 463,169 1,041,787
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Registered in Luxembourg No: B177300 Page 21
CONSOLIDATED STATEMENT
OF CASH FLOWS
For the year ended 31 December 2017
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 2017.
The accompanying notes form an integral part of these consolidated financial statements.
Notes 2017 €’000s
2016 €’000s
Cash flows from operating activites
17 114,053 87,167
Interest paid (45,458) (45,951)
Tax paid (5,235) (1,323)
Net cash received from operating activities 63,360 39,893
Cash flows from investing activities
Purchase and development of investment properties (183,255) (257,119)
Sale of investment properties 57,820 115
Capital expenditure on investment properties (110,392) (53,565)
Net cash used in investing activities (235,827) (310,569)
Cash flows from financing activities
Net drawdown/(repayment) of shareholder loans (170,493) 12,385
Net drawdown/(repayment) of related party loans (981) 926
Net drawdown/(repayment) of bank borrowings (201,205) (406,400)
Net drawdown on Bonds 493,909 494,484
Net drawdown/(repayment) of Revolving Credit Facilities (120,000) 120,000
Exceptional costs of refinancing (4,199) (13,171)
Financing costs (1,655) (942)
Proceeds from issue of share capital 117,816 101,093
Dividends paid to ordinary shareholders (7,187) –
Net cash from financing activities 106,005 308,374
Net (decrease)/increase in cash and cash equivalents (66,462) 37,698
Cash at beginning of the year 111,466 73,768
Cash at end of the year 45,004 111,466
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Registered in Luxembourg No: B177300 Page 22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2017
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 two employees based in the registered office
of the Company.
These Consolidated Financial Statements have been approved for issue by the Board of Managers on 15
February 2018. 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
for shares, debentures or other securities, whether fully or partly paid up, of any person, whether or not
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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 also 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 2017.
Recognition of deferred tax assets for unrealised losses – Amendments to IAS 12, and
Disclosure initiative – amendments to IAS 7.
The adoption of these amendments did not have any impact on the Consolidated Financial Statements of the
Group or the Company for the current period or any prior period and is not likely to affect future periods.
The amendments to IAS 7 require disclosure of changes in liabilities arising from financing activities, see
Note 17.
A number of new standards and amendments to standards and interpretations are effective for annual
periods beginning after 1 January 2017, and have not been applied in preparing these consolidated financial
statements:
IFRS 9 ‘Financial instruments’
IFRS 15 ‘Revenue from contracts with customers’
IFRS 16 ‘Leases’
Amendment to IAS 40, ‘Investment property’ relating to transfers of investment property
Annual improvements 2014–2016
IFRIC 22 ‘Foreign currency transactions and advance consideration’
None of these standards not yet effective are expected to have a significant effect on the Consolidated
Financial Statements of the Group. Certain Standards which might have an impact are discussed below.
Title of standard IFRS 9 Financial Instruments
Nature of change IFRS 9 addresses the classification, measurement and derecognition of financial
assets and financial liabilities, introduces new rules for hedge accounting and a new
impairment model for financial assets.
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Impact
The group has reviewed its financial assets and liabilities and is expecting the
following impact from the adoption of the new standard on 1 January 2018:
i. Classification – Financial assets and liabilities
IFRS 9 contains three principal classification categories for financial assets:
measured at amortised cost, FVOCI and FVTPL. The standard eliminates the
existing IAS 39 categories of held to maturity, loans and receivables and available
for sale.
Based on its assessment, the Group does not believe that the new classification
requirements will have a material impact on its accounting for investments in
equity securities that are managed on a fair value basis. At 31 December 2017, the
Group had no equity investments classified as available-for-sale.
There will be no impact on the Group’s accounting for financial liabilities, as the
new requirements only affect the accounting for financial liabilities that are
designated at fair value through the Consolidated Statement of Comprehensive
Income and the group does not have any such liabilities. The derecognition rules
have been transferred from IAS 39 Financial Instruments: Recognition and
Measurement and have not been changed.
ii. Impairment – Financial assets and contract assets
The new impairment model requires the recognition of impairment provisions
based on expected credit losses (ECL) rather than only incurred credit losses as is
the case under IAS 39. It applies to financial assets classified at amortised cost,
debt instruments measured at FVOCI, contract assets under IFRS 15 Revenue from
Contracts with Customers, lease receivables, loan commitments and certain
financial guarantee contracts.
The significant financial assets held by the Group that will be impacted by the
impairment losses recognised under IFRS 9 are trade receivables. Gross trade
receivables held at 31 December 2017 were €29,139k with an impairment
provision, recognised under IAS 39, of an immaterial amount as shown in Note 10.
Based on the reasons set out in the Financial risk factors section (Note 1), the credit
risk associated with unpaid rent is deemed to be low. Management have performed
an assessment of the impact of impairment losses recognised for trade receivables
under IFRS 9 at 31 December 2017 through estimating the ECLs based on actual
credit loss experienced over the past three years. Based on this assessment the
impact and volatility on impairment losses recognised under IFRS 9 is immaterial.
iii. Hedge accounting
As a general rule, more hedge relationships might be eligible for hedge accounting,
as the standard introduces a more principles-based approach. The Group has no
current hedge relationships for foreign exchange contracts or cross currency swap
contracts designated as net investment hedges which would qualify as continuing
hedges upon the adoption of IFRS 9.
The Group does not intend to designate other derivative instruments which may be
used as part of its risk management strategy as hedging relationships under IFRS 9.
iv. Disclosures
The new standard also introduces expanded disclosure requirements and changes in
presentation. These are not expected to change the nature and extent of the Group’s
disclosures.
Date of adoption
by group
Must be applied for financial years commencing on or after 1 January 2018. The
Group will apply the new rules retrospectively from 1 January 2018, with the
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practical expedients permitted under the standard. Comparatives for 2017 do not
require restatement.
Title of standard IFRS 15 Revenue from Contracts with Customers
Nature of change The IASB has issued a new standard for the recognition of revenue. This will
replace IAS 18 which covers contracts for goods and services. The new standard is
based on the principle that revenue is recognised when control of a good or service
transfers to a customer. The standard permits either a full retrospective or a
modified retrospective approach for the adoption.
Impact
Management has assessed the effects of applying the new standard on the Group’s
financial statements.
Revenue recognition – IFRS 15 does not apply to rental income which
makes up over 76% 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. At present the Group
does not expect IFRS 15 to have a significance difference in the timing of
the recognition of revenue for the non-core income streams that falls
under the scope and an immaterial impact on the Group’s Consolidated
Statement of Comprehensive Income.
Disclosures – The new standard also introduces expanded disclosure
requirements. These will change the nature and extent of the Group’s
revenue disclosures.
Date of adoption
by group
Mandatory for financial years commencing on or after 1 January 2018. The Group
intends to adopt the standard using the modified retrospective approach which
means that the cumulative impact of the adoption will be recognised in retained
earnings as of 1 January 2018 and that comparatives will not be restated.
Title of standard IFRS 16 Leases
Nature of change IFRS 16 was issued in January 2016. It will result in almost all leases being
recognised on the balance sheet for a lessee, as the distinction between operating
and finance leases is removed. Under the new standard, an asset (the right to use
the leased item) and a financial liability to pay rentals are recognised. The only
exceptions are short-term and low-value leases. The accounting for lessors will not
significantly change.
Impact
At present, as a lessee the Group holds one operating lease, with the non-
cancellable future lease payments at 31 December 2017 of €96k. Management
have performed an assessment of the impact of bringing operating leases on
balance sheet and IFRS 16 is expected to be immaterial to the Group.
Date of adoption
by group
Mandatory for financial years commencing on or after 1 January 2019. At this
stage, the Group does not intend to adopt the standard before its effective date. The
Group intends to apply the simplified transition approach and will not restate
comparative amounts for the year prior to first adoption.
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’s subsidiaries 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 remaining 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 which each own 50% shareholding in Segro European Logistics Partnership
S.à r.l. Inter-company transactions, balances and unrealised gains or losses on transactions between Group
companies are eliminated.
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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
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 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 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 IAS 39, as appropriate, with the corresponding gain or loss being recognised in the
Group 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 1 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 €114,053k (€87,167k in 2016) together with
its short term net assets and access to funding via the Group’s Revolving Credit Facility 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 2017 are:
Consolidated Statement of Financial Position: €1 = PLN4.159 (2016: 4.402) and €1 = CZK25.58 (2016:
27.09)
Consolidated Statement of Comprehensive Income: €1 = PLN4.31 (2016: 4.36) and €1 = CZK26.59 (2016:
27.03)
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, joint venture 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 services is recognised by reference to the state of completion of the relevant services
provided at the reporting date. Service charge income and expenditure is recognised within the
Consolidated Income Statement.
Sale of trading properties
Proceeds from the sale of trading properties are recognised when the risks and rewards of ownership have
been transferred to the purchaser. This generally occurs on completion of the contract.
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.
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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. An impairment provision is created where there
is objective evidence that the Group will not be able to collect in full.
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method.
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. 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 and 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.
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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 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
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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.
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 2017, the Group has minimal exposure to interest rate risks and an
analysis of this risk is disclosed in Note 2.
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: €14,715k
Gross currency liabilities: €334k
Net exposure: €14,381k
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 €757k.
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 2017. 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.
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 32
Details of the maturity of long-term payables is shown within Note 12.
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 2017, if interest rates
had been 200 basis points higher, with all other variables held constant, post-tax profit for the year would
have been €1,850k 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 €581k.
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:
5.
2017 €’000s
2016 €’000s
Rental income from investment properties 155,222 140,230
Surrender premiums 580 –
Gross rental income 155,802 140,230
Property management fees 2,670 2,729
Service charge income 45,293 40,601
Total revenue 203,765 183,560
2017 €’000s
2016 €’000s
Vacant property costs (1,490) (1,580)
Service charge (42,781) (38,512)
Venture and asset management fees (14,255) (12,456)
Letting, marketing, legal and professional fees (2,455) (2,194)
Bad debt expense (488) (521)
Other expenses (6,833) (4,529)
Property management expenses (68,302) (59,792)
Property administration expenses (83) (99)
Total property operating expenses (68,385) (59,891)
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 33
5. Administration expenses
Administration expenses are comprised of :
Auditor’s remuneration includes non audit services for an amount of €75k. During the period the Group
employed an average of two employees (2016: two).
6. Realised and unrealised property gains/(losses) from changes in fair value of investment properties
Gains and losses from changes in the fair value of investment properties are comprised of :
7. Finance costs
Finance costs are comprised of :
Refinancing costs relate to the repayment of the financing facilities detailed in Note 12 and is, therefore,
considered to be a one-off cost.
2017 €’000s
2016 €’000s
Administration expenses
(2,014) (1,761)
Administration expenses include:
Auditor’s remuneration (455) (281)
Staff costs (110) (112)
2017 €’000s
2016 €’000s
Profit/(loss) on sale of investment properties
847 (260)
Unrealised gain/(losses) on investment properties
175,057 35,720
Total realised and unrealised property gain/(losses) 175,904 35,460
2017 €’000s
2016 €’000s
Finance costs
Interest on loans
(14,186) (20,622)
Interest on shareholder and related party loans (30,897) (29,253)
Exchange gain/(loss) 417 (1,098)
Refinancing costs (4,199) (13,219)
Total borrowing costs (48,865) (64,192)
Less amounts capitalised on the development of properties 1,655 942
Net finance costs (47,210) (63,250)
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 34
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 27.08% (2016: 29.22%) 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
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
Balance 1
January
Exchange
Movement
Acquisition/
disposal
Recognised in
income
Balance 31
December
2016 €'000s €'000s €'000s €'000s €'000s
Valuation surpluses and deficits on properties
48,557 (279) 898 7,123 56,299
Accelerated tax allowances 28,271 (167) – 5,637 33,741
Deferred tax asset on revenue losses (2,608) 16 (60) (20) (2,672)
Other 636 (4) – 920 1,552
74,856 (434) 838 13,660 88,920
2017 €’000s
2016 €’000s
Current tax
Current tax charge (7,804) (1,323)
Total current tax (charge)/credit (7,804) (1,323)
Deferred tax
Origination and reversal of temporary differences (5,800) (1,033)
Released in respect of property disposals in the year 300 –
On valuation movements (22,200) (13,464)
Total deferred tax in respect of investment properties
(27,700) (14,497)
Other deferred tax (966) –
Total deferred tax (charge)/credit (28,666) (14,497)
Total tax (charge)/credit on profit on ordinary activities (36,470) (15,820)
2017 €’000s
2016 €’000s
Profit on ordinary activities before tax 262,060 94,118
Multiplied by standard rate of corporation tax (70,966) (27,501)
Exempt OPCI and REIF on income and gains 27,592 11,760
Non-deductible items (3,266) –
Different tax rates on international earnings 9,188 5,670
Permanent differences 199 (387)
Adjustments in respect of earlier years and assets not recognised 783 (5,362)
Total tax (charge)/credit on profit on ordinary activities (36,470) (15,820)
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 35
9. Investment properties
Movements in the period were as follows :
Investment properties are stated at fair value as at 31 December 2017 based on external valuations
performed by professionally qualified valuers. The Group’s property portfolio was valued at 31 December
2017 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
€200,138k (2016: €131,295k). During the period €1,655k (2016: €942k) of interest has been capitalised,
within additions to existing investment properties.
All amounts included within total revenue in the Consolidated Income 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.
Investment property assets available for sale
The Group resolved in November 2017 to sell a number of assets, located in Germany. As a result The
Group is currently holding €54.8 million (2016: €nil), net of fees and transaction costs, of properties held by
SELP Uberherrn S.à r.l., SELP Herbrechtingen B.V., SELP Saarwellingen 1 B.V., SELP Saarwellingen 2
B.V. and SELP Saarwellingen 3 B.V. are held for sale. Three assets, with a total area of 88,750 sq m, are
not considered core assets by the Group and discussions are well advanced with a seller. It is anticipated
that these properties will be sold in H1 2018.
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 2017 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).
2017 €’000s
2016 €’000s
At 1 January 2017 2,472,499 2,105,876
Investment property acquisitions 183,255 257,119
Investment property disposals (56,969) (115)
Additions to existing investments properties 113,400 68,703
Revaluation surplus during the year 175,057 35,720
Investment properties held for sale (54,757) –
At 31 December 2,832,485 2,467,302
Straight-lining of lease incentives and letting fees 1,960 5,197
Total investment properties 2,834,445 2,472,499
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 36
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
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 €136 million decrease in property values whilst a 5%
decrease in investment yields would result in a €136 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.
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 2,628,730 200,138 2,828,868 49.4 36-108 5.53 4.60-7.30
Offices 5,577 – 5,577 127.2 127 5.66 5.66
Group total 2,634,307 200,138 2,834,445 49.4 36-127 5.53 4.60-7.30
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 833,047 67,890 900,937 52.4 36-90 4.88 4.60-6.80
France 634,075 – 634,075 51.4 41-93 5.82 5.60-7.30
Poland 687,425 44,881 732,306 43.9 36-108 3.74 6.20-7.30
Czech Republic 112,390 15,185 127,575 54.3 49-102 5.68 6.20-6.60
Benelux 191,550 23,807 215,357 73.5 24-102 5.20 5.30-6.90
Spain 38,150 48,375 86,525 62.0 60-69 5.40
5.40
Italy 137,670 – 137,670 44.9 38-61 6.11 6.00-6.40
Group Total 2,634,307 200,138 2,834,445 49.4 36-127 5.53 4.60-7.30
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 37
The Group’s property assets are insured by RSA. 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.
10. Trade and other receivables
Trade and other receivables are comprised of :
Other receivables include €25.9 million of VAT paid in respect of property acquisitions in Italy and Spain.
As at 31 December 2017, trade receivables of €29,139k were due of which €1,990k were impaired. The
€27,149k net 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 2017 are fully covered by bank guarantee or deposit.
A total of €1,990k 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 2017, the Group’s trade receivables denominated over time were:
Total Current < 1 Month < 2 Month <3 Month >3 Months
29,139 22,110 1,941 991 1,713 2,384
Trade receivables as at 31 December 2016 were:
Total Current < 1 Month < 2 Month <3 Month >3 Months
26,477 16,476 5,793 99 1,907 2,202
11. Cash and cash equivalents
2017 €’000s
2016 €’000s
Trade receivables 29,139 26,477
Provisions for doubtful debts (1,990) (1,179)
Net trade receivables 27,149 25,298
Service charge receivables 4,959 3,076
Other receivables 40,798 27,500
Tenant deposits 8,616 7,329
Prepayments and accrued income 5,833 3,762
Total current trade and other receivables 87,355 66,965
2017 €’000s
2016 €’000s
Unrestricted bank balances 45,004 111,466
Total cash and cash equivalents 45,004 111,466
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 38
12. External borrowings
(a) The Group’s borrowings as at 31 December 2017 are summarised as follows:
During the year the Group launched an eight year, €500 million, unsecured guaranteed bond listed on the
Irish Stock Exchange, Dublin. The bond carries an annual coupon of 1.5% payable annually and is not subject
to inflationary uplifts.
The Group has agreed an unsecured Revolving Credit Facility : The Facility permits a maximum amount of
€200 million to be drawn down at a floating rate of interest based on the European interbank offered rate plus
a margin determined by reference to the loan to value ratio (“LTV”) of the Group (which, assuming the
Group is in line with its target LTV of 35 to 40%, will be equal to 1.075% per annum). The facility had an
initial four year period with options to extend for two further one year periods. The facility has been
extended for one year and currently expires in October 2021.
The Group repaid one facility in November 2017 : The Aareal – French Facility (€201 million) repaid with
the proceeds of the 2025 bond issued on 20th November 2017.
The main features of the Group’s outstanding facilities 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 €200,000,000 revolving facility Variable 22 October 2021 (4 year facility)
Deka – Germany €59,100,000 term loan Fixed 1.28% 23 September 2020 (5 year facility)
During 2017, there were no breaches of the financial covenants which could invoke foreclosure on any of the
facilities.
2017 €’000s
2016 €’000s
Unsecured borrowings:
2023 Maturity Bond 500,000 500,000
2025 Maturity Bond 500,000 –
Revolving Credit Facility – 120,000
Secured borrowings:
Bank loans 59,100 260,305
Total unsecured 1,059,100 880,305
Loan Arrangement Fee:
Balance at 1 January 2017 (7,596) (5,647)
Capitalised in the year (6,091) (6,972)
Written off in the year 269 3,300
Straight lining effect of amortised costs 1,686 1,723
(11,732) (7,596)
Balance at 31 December 1,047,368 872,709
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 39
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
impairment provision 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.
All financial assets and liabilities (except cash and cash equivalents, which are classified as level 1) are
classified as level 2.
Fair Value
2017
Book Value
2017
Fair Value
2016
Book Value
2016
Financial assets €'000s €'000s €'000s €'000s
Trade and other receivables 87,355 87,355 66,965 66,965
Financial liabilities
External borrowings (1,060,606) (1,047,368) (873,262) (872,709)
Related party borrowings (529,019) (385,728) (688,321) (557,203)
Trade and other payables (92,766) (92,766) (90,366) (90,366)
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. These debts carry a
fixed coupon of 6.6% and are due for repayment in December 2028.
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 facility contains covenants. Compliance with these covenants is monitored on a quarterly basis. All
covenants were fully complied with throughout the period to 31 December 2017.
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 40
The loan to value ratio for the Group’s secured bank facility at 31 December 2017 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 and the Revolving Credit Facility 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 36% whilst ICR is 9:1.
(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).
(c) Trade and other payables
Germany €’000s
Total Secured €’000s
Investment Property Market Value 150,609 150,609
Gross Borrowings 59,100 59,100
Loan to Value 39% 39%
2017 €’000s
2016 €’000s
Due after one year
Shareholder loans 377,364 547,858
Amounts due to related parties 8,364 9,345
Total other payables due after one year 385,728 557,203
2017 €’000s
2016 €’000s
Due after one year
Trade payables 4,023 4,784
VAT payable 864 22
Deferred income 16,189 17,137
Accruals 34,115 30,287
Accrued interest payable on bank loans 2,115 2,108
Other liabilities 21,629 14,952
Accrued interest on shareholder and related party loans 7,345 13,123
Shareholders payables 6,486 7,953
Total trade and other payables due within one year 92,766 90,366
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 41
13. Share capital and share premium
(a) Share capital
As at 31 December 2017, the share capital is comprised as follows :
The share capital consists of 17,300 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 2017, 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 €66,292k.
14. Capital commitments
Contractual obligations to purchase, construct, develop, repair, maintain or enhance assets as at 31 December
2017 were €46.6 million (2016: €40.1 million) and mainly relates to the Group’s development projects in
Germany, Spain and Poland. The Group has contracted to purchase land and a 31,000 sq m building,
currently under construction, for €25.6 million. In December 2017 the Group entered into contractual
arrangements to purchase a 46,000 sq m building currently under construction in Madrid for €18.6 million and
the Group also contracted to purchase a 28,960 sq m building for €20.9 million currently under construction in
Barcelona.
Additionally, as at 31 December 2017 the Group had contracted to purchase an asset in Krefeld in Germany
for €1.8 million. The asset consists of 2 hectares of development land. The purchase completed on 3 January
2018.
The Company has committed to unconditional guarantees on behalf of SELP Finance S.à r.l. in relation to the
2023 and 2025 €500 million Euro bonds issued and traded on the Irish Stock Exchange, Dublin.
Issue and fully paid SEGRO Luxembourg
S.à r.l.
PSP Britannia Limited
s
Totals
€’000s €’000s €’000s
Ordinary shares of €1 at 1 January 8.60 8.60 17.20
Issue of shares 0.05 0.05 0.10
Ordinary shares of €1 at 31 December 8.65 8.65 17.30
SEGRO Luxembourg
S.à. r.l.
PSP Britannia Limited
s
Totals
€’000s €’000s €’000s
Balance at 1 January 190,969 190,969 381,938
Premium arising on the issue of shares 33,146 33,146 66,292
Balance at 31 December 224,115 224,115 448,230
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 42
15. Operating leases
The Group as lessor
The future aggregate minimum rental amounts receivable under non-cancellable operating leases on a
headline rent basis 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, and
Development Management Fees were paid to SELP Management Limited, a SEGRO plc group company,
acting as Venture Advisor to the Group.
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.
2017 €’000s
2016 €’000s
Not later than one year 144,809 152,818
Later than one year, not later than five years 446,786 398,808
Later than five years 269,128 264,856
860,723 816,482
2017 €’000s
2016 €’000s
Dividends paid 7,187 –
Interest expense 30,897 29,253
Venture, administration and property management fees 14,255 12,456
Development management fees 3,677 2,224
56,016 43,933
2017 €’000s
2016 €’000s
Shareholder Loans SEGRO Luxembourg S.à r.l. 172,278 236,203
Shareholder Loans PSP Britannia Ltd 172,278 236,203
Loan Notes SEGRO plc
16,404 37,726
Loan Notes PSP Britannia Ltd
16,404 37,726
Accrued Interest Payable to SEGRO Luxembourg S.à r.l.
3,672 6,562
Accrued Interest Payable to PSP Britannia Ltd
3,672 6,562
Trade and Other Payables to Related Payables
6,486 7,953
Related Party Loans Alpha Holdings S.à r.l.
8,364 9,345
399,558 578,280
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 43
17. Cash flow statement
Analysis of financial liabilities and assets arising from financing activities :
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 two hectares of development land in Krefeld,
Germany, in December 2017; the land plot was acquired for €1.8 million on 3 January 2018.
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 Group. 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 Group 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.
2017 €’000s
2016 €’000s
Reconciliation of cash generated from operations
Operating profit 309,270 157,368
Adjustments for:
Rent straight-lining and letting fees (1,960) (5,197)
Profit on sale of investment properties (847) –
Revaluation surplus on investment and owner occupied properties (175,057) (35,720)
Changes in working capital:
Decrease/increase) in debtors (20,390) (24,018)
Increase/(decrease) in creditors 3,037 (5,266)
Net cash flow from operations 114,053 87,167
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 880,305 500,000 (321,205) 1,059,100 – – 1,059,100 Capitalised finance costs (7,596) (6,091) – (13,687) 269 1,686 (11,732)
Total borrowings 872,709 493,909 (321,205) 1,045,413 269 1,686 1,047,368
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 44
Management estimates that an amount, after clawback, in the order of €22 million would be payable in respect of
this liability. It should be noted that this figure is difficult to estimate due to the geared nature of the calculation
which is based on absolute performance above a fixed hurdle, and hence is very sensitive to the assumptions.
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.
2017 2016
Northern
Europe
Southern
Europe
Central
Europe Total
Northern
Europe
Southern
Europe
Central
Europe Total
€'000s €'000s €'000s €'000s €'000s €'000s €'000s €'000s
Total Revenue 70,885 61,088 71,792 203,765 63,009 52,858 67,693 183,560
Net Income 52,220 41,641 41,519 135,380 47,804 34,924 40,941 123,669
Operating Profit 132,013 116,905 60,352 309,270 65,172 50,323 41,873 157,368
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 2017 2016
Luxembourg SELP Investments Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
75% 75%
Luxembourg SELP Finance Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (France) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Germany and Benelux) Sàrl
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Belgium) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Bravo Germany) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Charlie Germany) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Alpha Germany) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg Link Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
50.63% 50.63%
Luxembourg SELP (Spain) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Italy) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Poland and Czech Republic) Sàrl
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (CR) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Alpha Czechia) Sàrl (formerly Alpha Poland)
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Delta Spare 1) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Delta Spare 2) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP Delta Poland SCSp 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Delta Spare 4) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Delta Spare 5) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Krefeld 3) S.à r.l. (formerly Delta Spare 6)
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 45
Luxembourg SELP Med SCSp 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP Leipzig GP Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
50.63% 50.63%
Luxembourg SELP Berlin GP Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
50.63% 50.63%
Luxembourg SELP Ingolstadt GP Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
50.63% 50.63%
Luxembourg SELP (Alzenau) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Hamburg Pinkertweg) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Hamburg Winsen) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Kapellen) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Krefeld) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (MG Logistik) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Neuss) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Oberhausen) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Krefeld II) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Bischofsheim I) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Bischofsheim II) Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Berlin 2) Sàrl (formerly SELP Bravo Spare 2)
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP (Alzenau 2) Sàrl (formerly SELP Charlie Spare 2)
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP Leipzig Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
50.63% 50.63%
Luxembourg SELP Hamburg Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
53.12% 53.12%
Luxembourg SELP Überherrn Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
53.12% 53.12%
Luxembourg SELP Berlin Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
50.63% 50.63%
Luxembourg SELP Ingolstadt Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
50.63% 50.63%
Luxembourg SELP (Munich) Sàrl (formerly SELP Echo 1 Sàrl)
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP Oberhausen 2 Sàrl (formerly Echo 2)
35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
Luxembourg SELP Echo 3 Sàrl 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% 56,25%
France LPV France SPPICAV 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France Comete Developpement Sàrl 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SEGRO Logistics SAS 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SELP Marinière SAS 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SELP Marly SAS 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SELP Saint-Ouen SAS 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SEGRO (Aulnay) SCI 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SCI Boussard A 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SCI Boussard C 20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SELP Mitry (formerly SELP Mitry Mory)
20 rue Brunel, 75017 Paris ,France 56,25% 56,25%
France SCI SELP Clesud Route de Romans, 26260 Saint-Donat-sur-L'Herbasse France
56,25% 56,25%
Germany SELP Leipzig Logistik I GmbH Königsallee 61, Düsseldorf 40215, Germany 50.63% 50.63%
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 46
Belgium Panton Kortenberg Vastgoed NV De Kleetlaan 4 – bus 8, 1831 Diegem ,Belgium 56,25% 56,25%
Belgium Pakobo NV De Kleetlaan 4 – bus 8, 1831 Diegem ,Belgium 56,25% 56,25%
Belgium Rumst Logistics NV De Kleetlaan 4 – bus 8, 1831 Diegem ,Belgium 56,25% 56,25%
Belgium Rumst Logistics II NV De Kleetlaan 4 – bus 8, 1831 Diegem ,Belgium 56,25% 56,25%
Belgium Rumst Logistics III NV De Kleetlaan 4 – bus 8, 1831 Diegem ,Belgium 56,25% 56,25%
The Netherlands
SEGRO (Hoofddorp) BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 56,25% 56,25%
The Netherlands
SELP Herford 1 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Herford 2 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Herford 3 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Herford 4 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Herford 5 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Herford 6 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Neuenstadt 1 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Neuenstadt 2 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Neuenstadt 3 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Malsfeld 1 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Malsfeld 2 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Herbrechtingen BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Saarwellingen 1 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Saarwellingen 2 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Saarwellingen 3 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Leipzig 1 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SELP Leipzig 2 BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 53.13% 53.13%
The Netherlands
SEGRO Tilburg I BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 56,25% 56,25%
The Netherlands
SEGRO Tilburg II BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 56,25% 56,25%
The Netherlands
SELP Hoofddorp II BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 56,25% 56,25%
The Netherlands
SELP Netherlands (Holdings) BV Zandsteen 11, 2130 KA Hoofddorp, The Netherlands 56,25% 56,25%
Poland Aspen Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Branford Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Cambrilis Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Florette Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Galtic Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Karafiat House Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Keila Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Losette Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Lumina Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Nadarzyn Industrial Park Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 47
Poland Oriolus Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Quendis Sp zoo (formerly Quendis SELP Med Sp. K.)
Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Eduardo Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Jolie Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Pruszkow Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Ottoline Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Tala Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Collbert Investments Sp. Zoo. Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Dearing Investments sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland Goluski SP zoo (formerly Goluski SELP Delta Sp. Zoo. Sp. kom)
Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland SELP Med Sp. Zoo. Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Poland SELP Delta Sp. Zoo. Pl. Andersa 3, 61-894 Poznan, Poland 56,25% 56,25%
Czech Republic Secor Estates, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic Delta Tulipan Park, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic Alpha Tulipan Park, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic Beta Tulipan Park, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic Gamma Tulipan Park, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic GRONTFive, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic GRONT CR, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic Dani Estates, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic Pambrook International, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Czech Republic Gront Three, sro Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% 56,25%
Italy Logita REAIF Viale Piero e Alberto Pirelli, 27, 20126 Milano, Italy 56.25% 56.25%
Spain SELP (Coslada 1) S.L. Avenida Diagonal, 467 P6 PTA2, 08036, Barcelona 56,25% 56,25%
Spain SELP Spain Spare 1 S.L. Avenida Diagonal, 467 P6 PTA2, 08036, Barcelona 56,25% 56,25%
Spain SELP Spain Spare 2 S.L. Avenida Diagonal, 467 P6 PTA2, 08036, Barcelona 56,25% 56,25%
Spain SELP Spain Spare 3 S.L. Avenida Diagonal, 467 P6 PTA2, 08036, Barcelona 56,25% 56,25%
Spain SELP Spain Spare 4 S.L. Avenida Diagonal, 467 P6 PTA2, 08036, Barcelona 56,25% 56,25%
Spain SELP Spain Spare 5 S.L. Avenida Diagonal, 467 P6 PTA2, 08036, Barcelona 56,25% 56,25%
During the year the Company incorporated the following entities :
Country Company Address 2017 2016
Luxembourg SELP Spare 1 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% N/A
Luxembourg SELP Spare 2 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% N/A
Luxembourg SELP Spare 3 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% N/A
Luxembourg SELP Spare 4 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% N/A
Luxembourg SELP Spare 5 35-37 av. de la Liberté, 1931 Luxembourg, Grand-Duchy of Luxembourg
56,25% N/A
SEGRO European Logistics Partnership S.à r.l.
Registered in Luxembourg No: B177300 Page 48
Poland Junius Sp Zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% N/A
France Selp Fallavier (SCI) 20 rue Brunel, 75017 Paris, France 56,25% N/A
France Selp Nimes (SCI) 20 rue Brunel, 75017 Paris, France 56,25% N/A
During the year the Company acquired the following entities :
Country Company Address 2017 2016
Poland Corin Investments Sp zoo Pl. Andersa 3, 61-894 Poznan, Poland 56,25% N/A
Czech Republic Air 6 Park a.s. Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% N/A
Czech Republic GrontOne s.r.o Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% N/A
Czech Republic GrontTwo s.r.o. Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% N/A
Czech Republic Grontinfra s.r.o. Na Prikope 9 a 11, 110 00 Praha 1, Czech Republic 56,25% N/A
France Selp Pusignan Auriol SCI 20 rue Brunel, 75017 Paris, France 56,25% N/A