Member Article

South East to see share of £800m new logistics warehousing following Segro deal

Property and investment company Segro has announced a partnership with specialist industrial developer Roxhill Development Group that paves the way for 10m sq ft of new logistics warehousing to be constructed across the South East and Midlands.

The deal will see Roxhill work exclusively with Segro once existing developments with other partners are completed, and will see Segro gain access to the industrial developer’s big box logistics portfolio.

As part of the agreement, Slough-based Segro will gain an initially deferred 50% share of Roxhill’s interests in site options, before gaining the option on all the remaining sites in 30 months following completion.

Taken in total, the sites represent an expenditure of around £800m for 10m sq ft.

The firms previously worked together in 2013 on the 120-acre Rugby Gateway site, just off Junction 1 of the M6, which currently houses DHL and Hermes.

David Sleath, Chief Executive Officer of Segro, David Sleath, commented: “Roxhill is a market-leading developer and a partner we know, trust and for whom we have a high regard.

“This partnership establishes a clear path for us to achieve the scale we desire in the attractive UK big box logistics market.

“We are convinced that this market has very favourable long term prospects given the lack of quality supply and increasing demand from retailers and logistics operators for modern space in the right locations.”