|
Segro PLC on Wednesday confirmed it has agreed heads of terms to launch a new ‘big box’ joint venture in the UK. The London-based warehouse landlord issued a statement in response to ‘media speculation’, in which it noted that its partner in the 50/50 venture is ‘a major international institutional investor’, which had been selected through a competitive process that started last year. Segro shares rose 0.6% to 880.40 pence on Wednesday morning in London, and are up 27% over the past year. The JV involves developing and operating three logistics parks in Radlett, Coventry and Northampton. Once fully let, these are expected to provide 925,000 square metres of space, generating about £135 million in headline rent, with a gross asset value of £3 billion. The parks will be sold to the JV at an agreed price of approximately £1 billion, Segro said. Further capital expenditure required for their development is anticipated in the region of £820 million, and delivery is targeted through to 2030. The JV will be funded by a combination of partner equity and non-recourse third-party debt, Segro added. It expects to receive management fee income, in return for asset, property, development, financial and administrative services and advice. Definitive documentation of the transaction is expected in the second half of 2026, though it remains subject to final approvals and due diligence, with Segro noting there is no certainty the transaction will proceed. Segro Chief Executive David Sleath commented: ‘This latest strategic partnership allows us to bring together some of the UK’s most attractive logistics parks within a capital-efficient structure, deepening our investment capacity and showcasing the strength of our asset management platform.’ It comes shortly after Segro rebuffed a takeover approach from San Francisco-based logistics real estate investment trust Prologis Inc last week, Prologis revealed that it had approached Segro with a proposal which valued the UK firm at around £12.6 billion. Segro’s board rejected the offer, on the basis that it was ‘opportunistically timed’ and undervalued the company. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
