Europe's industrial REIT Segro has agreed to develop a new 32,300 m2 campus facility for Alcatel Lucent at its Energy Park in Vimercate, Northern Italy. Alcatel Lucent has entered into a 10-year lease with Segro, generating annual rental income of £4.2 mln (EUR 4.7 mln).

This agreement will see Segro develop five new buildings for Alcatel Lucent, plus a multistorey car park for use by Alcatel Lucent and other occupiers on the estate. Alcatel Lucent, who have had their headquarters at Energy Park since 1962, currently occupies old industrial style buildings and has been looking to expand its presence on the park for some time. The new buildings will provide modern office accommodation for Alcatel's 1,400 employees who are based at Energy Park.

Subject to planning permission, work on the development will start in autumn 2011, with Alcatel undertaking a phased move to its new buildings during 2012-2013.

This development is part of Segro's longer-term masterplan for Energy Park which will see it become a new style technology campus, attractive to a wide range of modern, high-tech companies. Segro acquired Energy Park in August 2007. It is located 20 kms northeast of Milan in a well known industrial business zone for leading technology communications companies. Other Segro occupiers on the estate include SAP Italy, Stanley Black and Decker, Nobel Biocare, Analog Devices and AWB Consulting.

Segro's portfolio comprises £5.3 bn of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections.