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Segro has announced a 50:50 joint venture with an international investor to develop and operate three logistics parks along the UK's M1 motorway corridor. The partnership has a projected fully developed gross asset value of around GBP 3 billion. Segro will contribute logistics parks in Radlett, Coventry and Northampton to the venture. The announcement comes soon after the company rejected a GBP 12.6 billion takeover approach from U.S.-based logistics developer Prologis. Once completed by 2030, the project is expected to significantly expand warehouse space and rental income across the three sites.
British warehouse developer and real estate investment trust Segro has entered into a 50:50 joint venture with an international investor to develop and operate three logistics parks along the UK's M1 motorway corridor. The portfolio is expected to have a fully developed gross asset value of around GBP 3 billion (USD 3.97 billion).
As part of the transaction, Segro will contribute three logistics parks located in Radlett, Coventry and Northampton to the joint venture. Each asset has been valued at around GBP 1 billion. The three locations are strategically positioned along the M1 motorway, providing direct connectivity to London and key distribution markets across the UK.
The existing portfolio includes around 225,000 square metres of fully leased warehouse space, generating approximately GBP 25 million in headline annual rent. In addition, the sites include around 380 acres of land available for future development, providing scope for significant expansion over the coming years.
Once fully developed and leased, the logistics parks are expected to offer around 925,000 square metres of warehouse space and generate approximately GBP 135 million in headline annual rent. Development of the project is expected to be completed by 2030.
The development will be financed through a combination of equity contributed by the joint venture partners and third-party debt raised at the joint venture level. The structure allows Segro to continue expanding its logistics portfolio while sharing development costs and investment risk with its partner.
The announcement follows developments from the past month, when U.S.-based logistics real estate company Prologis publicly disclosed a GBP 12.6 billion takeover proposal for Segro after its initial approach was rejected by the UK-based company. The proposal highlighted the growing investor interest in logistics real estate, driven by strong demand for modern warehousing linked to e-commerce, manufacturing and supply chain expansion.
Segro has continued to focus on expanding its logistics and industrial property portfolio across the UK and Europe through selective developments and partnerships. The latest joint venture aligns with the company's strategy of accelerating large-scale projects while maintaining financial flexibility.
Source Reuters
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