UK's Segro to develop Paris data centre under newly formed JV
Segro's Joint Venture and Data Centre Expansion Plans
Joint Venture Details and Earnings Target
July 8 (Reuters) - British warehouse landlord Segro said on Wednesday it would form a joint venture to develop a data centre in Paris, and set a target of 50 pence in adjusted earnings per share by 2030, versus the 36.6 pence delivered last year.
The firm, which is in talks over a potential £12.6 billion ($16.8 billion) takeover by U.S. logistics firm Prologis, said it would develop the data centre through a 50-50 partnership with UK-based Pure Data Centres Group (Pure DC).
CEO Statement on Data Centre Pipeline
"Our data centre pipeline is well-placed to accelerate rapidly as hyperscaler demand remains focused on Europe's key Availability Zones, where land with power certainty and planning consents is extremely constrained," CEO David Sleath said.
Previous Partnerships and Future Prospects
Second Partnership with Pure DC
The project marks Segro's second partnership with Oaktree-backed Pure DC after the companies signed a joint venture in March 2025 to develop a £1 billion data centre in west London.
Growth in Data Centre Rental Income
Segro said it expects data centres to account for more than 30% of its net rental income by 2035, up from 7% currently.
Potential Income Opportunities
Its data centre projects offer near- and medium-term opportunities worth up to £460 million in potential income, the company added.
Financial Performance and Takeover Opposition
Headline Rent and Occupancy Rate
Separately, Segro said new headline rent secured in the first half rose to £53 million from £31 million a year earlier, while its occupancy rate fell 0.4 percentage points to 94.5%.
Response to Prologis Takeover Proposal
The company also reiterated its opposition to Prologis' proposal, calling it "opportunistic, one-sided and inadequate", grounds on which it rejected a previous bid.
Additional Information
($1 = 0.7486 pounds)
(Reporting by Prerna Bedi in Bengaluru. Editing by Sonia Cheema and Mark Potter)
