Heathrow cargo landlord welcomes airport expansion yes vote

SEGRO, the property firm that owns most of the airside cargo terminals at Heathrow airport, has welcomed last night's (Monday) vote by the House of Commons in favour of expansion at the UK's number one airfreight hub. 

David Sleath, chief executive  of SEGRO, said: “The vote in favour of a third runway at Heathrow is great news. We have long supported the need for additional capacity at the UK’s hub airport - the largest port by value.

"The third runway will double cargo capacity, securing British trade links to the global economy. This is a significant milestone but now we must build the momentum for delivery.”

UK Members of Parliament (MPs) voted 415 to 119 in favour of Heathrow expansion, a majority of 296.

MPs voted overwhelming in favour of the Conservative minority government's final National Policy Statement on Heathrow expansion which will see a third runway operational by 2026 at an estimated cost of £14bn.

SEGRO is FTSE 100 company which owns over 5m sq ft of industrial property at London’s airports, primarily at Heathrow.

In March 2017, the industrial warehouse developer paid £365m to acquire 100% control of Airport Property Partnership (APP), whose assets include the majority of Heathrow Airport’s airside cargo facilities.

SEGRO bought the 50% interest in the APP joint venture that it did not already own from partner Aviva Investors in a £216m cash transaction and the disposal of £149m in assets to Aviva Investors.

APP has a £1.1bn portfolio of airside and landside assets at and around London’s major airports, of which 87% (by value) are located at Heathrow.