Business
SEGRO plc CONFIRMS NEW UK BIG BOX JOINT VENTURE
SEGRO plc has confirmed heads of terms for a 50:50 joint venture with a major international institutional investor to develop and operate three large UK logistics parks, expected to deliver approximately 925,000 sq m of space with a headline rent of £135 million and a fully developed gross asset value of £3 billion. SEGRO will contribute three prime logistics parks, currently generating £25 million in headline rent and possessing 380 acres of developable land, for an agreed price of £1 billion. Future development capital expenditure is estimated at £820 million, with funding from partner equity and joint venture debt, and SEGRO will also earn management fees. Definitive agreements are anticipated in the second half of 2026, subject to approvals and due diligence. Disclaimer*
About this update from Segro Plc
1 July 2026 SEGRO plc ("SEGRO") CONFIRMS NEW UK BIG BOX JOINT VENTURE SEGRO plc, a leading owner, manager and developer of modern warehouses, industrial property and data centres, notes recent media speculation and confirms that it has agreed heads of terms for the formation of a new logistics joint venture with a major international institutional investor. Highlights: · 50:50 joint venture to develop and operate three major UK logistics parks in key locations, which, when fully-let, are expected to deliver a total of approximately 925,000 sq m of space, equating to an anticipated £135 million headline rent and fully developed gross asset value of approximately £3 billion (based on customary assumptions)[1]. · SEGRO has selected its partner for this development-led joint venture, following a competitive process that commenced in H2 2025. · SEGRO intends to seed the joint venture with three of its prime logistics parks in strategically important UK distribution locations: Radlett, Coventry and Northampton, currently comprising 225,000 sq m of fully leased income producing assets (with headline rent of £25 million) and 380 acres of developable land. · The parks will be sold to the joint venture at an agreed price of approximately £1 billion, in line with latest reported book value and relevant capital expenditure assumed for the period to completion of the transaction. · Future development capital expenditure required to complete the parks is expected to be approximately £820 million, with delivery targeted through to 2030. Funding is expected to be through a combination of partner equity and non-recourse third party debt at joint venture level. · SEGRO will also receive fee income from acting as manager to the joint venture, providing asset, property, development, financial and administrative services and advice. David Sleath, Chief Executive of SEGRO 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." Closing: The parties have entered into heads of terms in relation to the transaction and, subject to final approvals, confirmatory due...