Segro finalises initial terms for new UK logistics venture

Following recent media speculation, Segro has confirmed it has agreed heads of terms to establish a new logistics joint venture with a major international institutional investor.

Segro

The 50:50 partnership intends to develop and operate three prime UK logistics parks located in Radlett, Coventry, and Northampton. Once fully completed and let, the parks are expected to provide roughly 925,000 m2 of space, generating an estimated £135 mln (€159 mln) in headline rent with a fully developed gross asset value of approximately £3 bn (€3.54 bn).

Segro selected its partner through a competitive process that began in the second half of 2025. The company will seed the venture by selling the three parks—which currently include 225,000 m2 of fully leased, income-producing assets and 154 hectares of developable land—to the joint venture for approximately £1 bn (€1.18 bn), matching recent book values.

To complete the developments by the 2030 target, future capital expenditure is projected at £820 mln (€968 mln), funded via partner equity and non-recourse third-party debt. Segro will retain management of the venture, earning fee income for asset, property, development, and administrative services. While definitive transaction documents are anticipated in the second half of 2026, the deal remains subject to final approvals and due diligence.

David Sleath, CEO 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.”

Morgan Stanley, JLL and Slaughter and May advised Segro on the transaction.