SEGRO REJECTS PROLOGIS £12.6BN BID AS INADEQUATE

Segro, Europe's largest warehouse landlord, has rejected a £12.6 billion takeover approach from United States-based Prologis, describing the 925 pence-per-share offer as "opportunistic, one-sided and inadequate". The FTSE 100-listed real estate investment trust set out its defence to investors, arguing that the bid fails to reflect its potential for rental income to increase by more than £1 billion in coming years. Segro announced plans for a joint venture to develop a data centre in Paris and disclosed significant rent rises secured during the first half of the year.

Commercial property firm CBRE has valued Segro at approximately £13 per share, which would equate to approaching £18 billion, according to the company's statement. Chief executive David Sleath stated that Segro's portfolio of properties was "irreplicable", highlighting the company's more than 100-year history, asset base, and operational presence across local markets. Sleath identified two sources of growth: industrial and logistics development, which he said was accelerating, and data centres, where he characterised available sites as scarce relative to demand.

Segro's rejection marks the latest development in the proposed combination between the two property firms, which Prologis had first tabled the previous month. The outcome of the takeover attempt remains unclear, with negotiations continuing between the companies.