By Liza Helps, Property Editor, Logistics Matters

SAN FRANCISCO-based Prologis revealed it had put forward a proposal to buy Segro worth 925p a share on 16 June, which was rejected yesterday.

SEGRO, is the UK’s largest Real Estate Investment Trust (REIT), and owns and manages approximately 27 million ft2 of lettable warehouse and industrial space across the UK. In total it manages properties worth around £22 billion. 

Prologis owns and manages approximately  35.3 million ft2 of logistics warehouse space across the UK, spanning 207 buildings.

In an a statement at 9.45am today SEGRO said its broad had rejected the offer noting that while the offer represents a premium to the share price, it fails to capture the company’s future growth potential.

In an official statement SEGRO said: “The Board of SEGRO  notes the announcement by Prologis, and confirms that on 16 June 2026 it received an unsolicited proposal from Prologis regarding a possible offer for the entire issued and to be issued share capital of the Company.

“The Proposal comprised 0.084 new Prologis shares for each SEGRO share. Based on the Prologis share price of $145.3 and GBP:USD exchange rate of 1.32 as at market close on 23 June 2026, the Proposal represented a value of 925 pence per SEGRO share.

“The Board of SEGRO has unanimously and unequivocally rejected the Proposal, which falls a long way short of SEGRO’s own views on value.

“The Board of SEGRO considered the Proposal together with its advisers and believed that the Proposal was opportunistically timed and sought to take advantage of the clear dislocation between SEGRO’s current share price and its highly attractive underlying business and strong prospects. This has been accentuated by major geopolitical issues which have adversely impacted trading valuations across the UK and European real estate sectors relative to the US REIT sector.

“SEGRO has a clear strategy, supported by a strong balance sheet and a proven operating platform. Momentum is building in SEGRO’s occupational markets and the Company has a large and attractive development pipeline, including an exceptional data centre platform, as well as a long track record of delivery.

“Accordingly, the Board remains very confident in SEGRO’s ability to capture substantial value for its shareholders during the coming years.

“The announcement by Prologis does not amount to an announcement of a firm intention to make an offer. Save as set out in the Prologis announcement, there can be no certainty that any offer will be made for the Company, nor as to the terms of any such offer should one be made.

“This announcement has been made without the consent of Prologis.

“In accordance with Rule 2.6(a) of the Code, Prologis is required, by not later than 5.00pm (London time) on 22 July 2026, being 28 days after 24 June 2026, to either announce a firm intention to make an offer for SEGRO in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.”

Slaughter and May is acting as legal adviser to SEGRO.

Under the deal offered by Prologis, SEGRO shareholders would hold approximately 10.5 per cent of Prologis’ issued share capital.

Prologis believes that the deal is a highly compelling opportunity for SEGRO shareholders. SEGRO shareholders would receive shares in the world’s largest logistics REIT with a $140.9 billion market capitalisation, unlocking, on closing, significant upside to the current share price.

“Furthermore, the deal would provide SEGRO shareholders with participation in a global platform with a track record of outperformance across key metrics and the successful integration of major corporate transactions with the delivery of synergies. Prologis believes these factors will provide SEGRO shareholders with accelerated growth compared to the growth available to them in a standalone SEGRO.”

The £12.6 billion valuation breaks down to a 24.6% uplift on SEGRO’s share price as at yesterday’s close of play offering  925p for each SEGRO share versus a close of play valuation of 742 pence per share. Share prices were up 15.61% at 9.50am today at 857.80 pence.

Prologis believes that its global platform, balance sheet strength and diversified capital base can unlock the significant embedded value of SEGRO’s development and data center pipeline.

Prologis also believes the Combination would deliver significant benefits to its customers, employees and Prologis shareholders.

Prologis is urging SEGRO shareholders to encourage the SEGRO Board to engage with Prologis to allow a binding offer to be put to SEGRO shareholders for their consideration.

There can be no certainty that an offer for SEGRO will be made. A further announcement will be made as appropriate.

Linklaters LLP is retained as legal adviser to Prologis.

Prologis and SEGRO are currently going head to head in front of the Planning Inspectorate over East Midlands Gateway 2 in North Leicestershire – the two  logistics giants have differing views over the way forward for the 5 million ft2 development which is pazrt of a NSIP application. Logistics Matters has been reporting on the issues.