Prologis Intensifies Push for SEGRO Combination, Citing Data Center Scale and Capital Advantages

Prologis, Inc. on July 9, 2026, published a new investor presentation urging shareholders of SEGRO to press the British industrial landlord's board to engage in talks over a potential combination, escalating a public campaign that has so far been rebuffed by SEGRO's leadership.

The announcement, released via PR Newswire, stops short of a formal offer. Prologis explicitly noted that the publication "is not an announcement of a firm intention to make an offer" under Rule 2.7 of the UK City Code on Takeovers and Mergers, and that "there can be no certainty that any firm offer will be made."

The move follows what Prologis described as "constructive engagement" with SEGRO shareholders and comes after SEGRO published its own presentation the previous day.

Prologis Argues Data Center Scale Sets It Apart

Central to Prologis's case is its positioning as a power and data infrastructure platform. The company says it has an established data center business with end-to-end capabilities, supported by a dedicated data center team of more than 75 people, a development team of more than 250, an in-house energy team of more than 175, and a procurement team of more than 35.

Prologis disclosed a power pipeline of 5.8 gigawatts across approximately 30 projects that it says are either secured or in advanced stages, representing less than 1% of its overall portfolio. The company cited a longer-term estimate of more than 10 gigawatts, with more than 150 projects where power applications are under review.

The company argued that SEGRO shareholders would gain access to "a more experienced, larger and better-capitalised data center platform" capable of capturing value from both companies' data center pipelines, as well as the broader embedded power potential within the Prologis portfolio.

Prologis Questions SEGRO's Joint Venture Model

Prologis directed pointed criticism at SEGRO's reliance on project-level joint ventures to fund its data center ambitions, arguing the structure reflects capital constraints that a standalone SEGRO cannot overcome.

According to Prologis, development activity within SEGRO's Pure Data Center joint venture — and future joint ventures for fully fitted data center development outlined in SEGRO's own strategy — is funded at a loan-to-cost ratio of approximately 70%. Prologis contended that under these structures, SEGRO shareholders cede meaningful upside to joint venture partners while, unlike Prologis, not earning management fees or promotes that would amplify returns.

"SEGRO's reliance on project-level joint ventures underscores the capital constraints it faces as a standalone company," Prologis stated in the announcement. The company argued that a combination would allow SEGRO shareholders to participate in their pipeline's upside while benefiting from Prologis's balance sheet and strategic capital platform.

Prologis Flags SEGRO Valuation and Earnings Growth Gap

Prologis also challenged SEGRO's public market valuation, arguing it does not reflect the company's structural constraints relative to peers.

Based on SEGRO's December 31, 2025 valuations, Prologis noted that 88% of SEGRO's asset value comprised completed assets, with 12% in development properties and land sites valued using the residual method. On earnings, Prologis cited analyst consensus showing SEGRO's forecast earnings per share compound annual growth rate for the period from 2025 to 2028 at 4.7%, compared with a 7.1% forecast EPS CAGR for European logistics peers. Prologis argued that this growth outlook does not support the premium price-to-earnings multiple at which SEGRO already trades relative to those peers.

Prologis also noted SEGRO management's guidance of 50 pence in adjusted earnings per share by 2030, which implies a 6.4% EPS CAGR. The company said achieving that target would require a higher growth rate in the outer years of the forecast, given lower near-term consensus growth, and would demand "significant investment and new capital" that is "by no means certain."

Strategic and Stakeholder Arguments

Beyond financial metrics, Prologis argued the combination would benefit customers through its global platform and local leadership across logistics markets, and would support the United Kingdom's growth agenda through continued investment in strategic logistics infrastructure. Prologis noted it has operated in the U.K. for nearly 30 years.

The company said it "remains ready to engage constructively with the SEGRO Board" and urged SEGRO shareholders to encourage their board to enter dialogue that would allow a binding offer to be put to shareholders for their consideration.

Linklaters LLP is serving as legal adviser to Prologis. N.M. Rothschild & Sons Limited, JPMorgan together with its affiliate J.P. Morgan Securities plc, Eastdil Secured, and Merrill Lynch International are each acting exclusively for Prologis in connection with the matter.

A further announcement will be made as appropriate, according to Prologis. The investor presentation is available on Prologis's investor relations website, subject to certain jurisdictional restrictions.