Summary
- SEGRO’s board intends unanimously to recommend an acquisition valuing its issued and to-be-issued ordinary share capital at approximately $18.8bn.
- The transaction would combine a 368 million sq ft European operating portfolio with larger land, development, energy, and digital-infrastructure pipelines.
- SEGRO shareholder, court, regulatory, listing, planning, grid, customer, and project-finance milestones remain before the transaction and its data centre projects can be delivered.
Prologis and SEGRO have agreed terms for a recommended acquisition valuing the UK-listed property company’s issued and to-be-issued ordinary share capital at approximately $18.8 billion.
The agreement moves the transaction from an indicative proposal to a board-backed offer. SEGRO’s board intends unanimously to recommend the deal to shareholders.
Under the standard terms, SEGRO shareholders would receive 0.0920 new Prologis shares for each SEGRO share. A partial cash alternative will make up to approximately £3.5 billion available, with each shareholder’s basic entitlement equal to 25 per cent of a fixed value of 1,031.7 pence per SEGRO share.
A shareholder taking only that basic cash entitlement would receive 258 pence and 0.0690 Prologis shares for each SEGRO share. Elections above the basic entitlement may be scaled back if aggregate demand exceeds the available cash.
SEGRO shareholders would also be entitled to retain a 2026 interim dividend of up to 10.14 pence per share and a final dividend of up to 22.56 pence per share, subject to the stated terms.
Agreement starts the formal approval process
The acquisition is expected to close in the first half of 2027. It remains subject to SEGRO shareholder approval, court sanction, regulatory clearances, approval for a secondary Prologis listing on the London Stock Exchange, and other customary conditions.
Prologis shareholder approval is not required. The cash element will be financed through a committed term-loan facility, existing liquidity, and other available funding sources.
The formal recommendation follows an extended approach process. DataCentral reported in July that SEGRO’s board was minded to recommend an improved proposal, with its powered-land and data centre pipeline forming part of the strategic rationale.
The agreed terms now establish an exchange ratio, cash mechanism, dividend treatment, and expected closing period. They do not complete the transaction, and the companies remain separate while the approval process continues.
Prologis said the combined platform would have approximately $269 billion of assets under management. Its European operating portfolio would reach 368 million sq ft, representing a 47 per cent increase in Prologis’s regional footprint.
The companies also expect a combined European development pipeline of 13 million sq ft and a 126 per cent increase in Prologis’s European land bank. Those figures cover a property platform dominated by logistics, but the transaction also brings together sizeable energy and digital-infrastructure development positions.
Data centre value depends on delivery stage
SEGRO has developed its data centre strategy around land and power positions in European metropolitan markets including London, Frankfurt, Paris, Berlin, Warsaw, and Marseille.
The company reported approximately 0.5GW of existing data centre capacity at the end of 2025 and a power bank exceeding 2.5GW. Its published programme included power intended for powered-land sales, powered shells, and more capital-intensive fitted facilities.
Prologis has its own data centre power pipeline. It reported that this had reached 5.8GW in the second quarter of 2026, although power pipelines include sites at different stages of utility negotiation, control, planning, customer commitment, and development.
The figures cannot therefore be added together and treated as construction-ready capacity. A site with an advanced utility discussion is not equivalent to an energised plot with planning permission, a customer, funding, and a construction programme.
SEGRO has traditionally focused on securing land, planning, and power before selling or developing powered shells. It has also begun moving further into fitted data centre infrastructure through joint ventures, including its planned Park Royal project in west London with Pure Data Centres Group.
Fitted facilities require substantially more capital and technical delivery than powered land or a shell. Generators, switchgear, cooling plant, controls, fire systems, and other long-lead equipment must be financed, procured, installed, tested, and commissioned before customer IT equipment can operate.
The acquisition could give SEGRO’s development sites access to a larger balance sheet and a broader operating platform. It will also require Prologis to decide how capital is allocated between logistics, energy, powered-land transactions, shells, and fitted data centre projects.
Grid connection dates, planning approvals, customer commitments, construction capacity, and project-finance structures will determine which schemes advance first. Some sites may be sold, some developed as shells, and others retained through joint ventures or fitted-development models.
Regulatory and shareholder attention will initially focus on the corporate transaction. The data centre market will be watching for decisions on SEGRO’s existing development programme, including whether current joint ventures continue on their present terms and how quickly available power is converted into customer-backed projects.
The agreement removes uncertainty over whether the boards could reach terms. It does not remove the infrastructure constraints attached to the companies’ development pipelines. Power reservations create potential value, but planning, funding, customers, equipment, and construction determine whether that value becomes operating capacity.
