(LAND.L) Land Securities Group PLC Buy/Sell

LONDON, Nov 5 (Reuters) - Europe's largest listed industrial landlord, Segro, said on Thursday new enquiries for space continued to trend downwards in the third quarter, although early signs of recovery have emerged.
"We are, however, encouraged UK capital values seem to have shown early signs of stabilisation and Continental Europe appears unlikely to suffer the same level of declines that we have seen in the UK," Segro Chief Executive Ian Coull said in a trading update.
Segro, which now has about two-thirds of its property portfolio in the UK and the remainder mainly in France, Germany and Belgium, said that over the medium term, it will focus on reducing the vacancy rate of the Brixton portfolio.
The company, which took over indebted UK rival Brixton in August giving it a combined property portfolio worth 5.5 billion pounds ($9 billion), said its vacancy rate excluding Brixton's portfolio improved to 10.9 percent from 11.3 percent.
Including Brixton, its overall vacancy rate is 14 percent as of end-September 2009, Segro said.
Segro said disposals totalled 285 million pounds in the first nine months of this year at an average initial yield of 8.4 percent.
(Reporting by Daryl Loo; Editing by Sinead Cruise)
(See www.reutersrealestate.com for the global service for real estate professionals from Reuters) ($1=.6071 Pound) Keywords: SEGRO RESULTS/

(daryl.loo@thomsonreuters.com; +44 (0)207 542 5228; Reuters Messaging: daryl.loo.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.