Segro (LSE:SGRO) has agreed heads of terms for a 50:50 joint venture with a major international institutional investor, combining three of its UK logistics parks into a development vehicle targeting a fully built-out gross asset value of approximately £3 billion.
The FTSE 100 warehouse and industrial property owner will seed the joint venture with parks at Radlett, Coventry and Northampton, selling them into the structure at approximately £1 billion, in line with latest book value, including capital expenditure assumed through to completion.
The three parks currently comprise 225,000 square metres of fully leased space generating £25 million in headline rent, alongside 380 acres of developable land, with the completed estate expected to reach 925,000 square metres and £135 million of headline rent.
A further approximately £820 million of development capital expenditure is required to complete the parks, targeted for delivery through to 2030, funded through partner equity and non-recourse third-party debt at joint venture level.
Segro will also earn fee income as manager, covering asset, property, development and financial services.
Chief Executive David Sleath said the partnership "allows us to bring together some of the UK's most attractive logistics parks within a capital-efficient structure, deepening our investment capacity."
The partner was selected following a competitive process that commenced in the second half of 2025, with definitive transaction documents expected in the second half of 2026, subject to final approvals, due diligence and long-form documentation.
