Acquisition

SEGRO acquires a portfolio of prime logistics assets in Paris and Lyon for €160.8 million

SEGRO, Europe's leading owner-manager and developer of industrial property, has agreed the acquisition1 of a portfolio of eight prime French logistics estates for €160.8 million (£129.7 million) from Foncière Europe Logistique, a subsidiary of Foncière des Régions.

The portfolio comprises 13 buildings, which are 10 years old on average, totalling approximately 255,000 sq m of lettable space and currently generating €14.2 million (£11.5 million) of annualised rental income. The purchase price represents an attractive net initial yield of 8.4 per cent and reversionary yield of 7.7 per cent.

Five estates are located in established logistics locations in the Ile de France region around Paris, within close proximity to SEGRO's existing core logistics and light industrial estates. The remaining three estates are located in Lyon, one of France's most important logistics and transportation hubs, where SEGRO already has a presence. All eight estates are fully let to a range of strong covenants, a number of which SEGRO already has relationships with, including UPS, GEODIS, Daher, SONY, DSV and Saint-Gobain. The weighted average lease length is 6.0 years to expiry.

This transaction will significantly enhance SEGRO's existing strong platform in the Ile de France, one of Europe's wealthiest and largest economic regions, and strengthen its asset base in the key logistics market in Lyon. The acquired assets will increase SEGRO's portfolio in the Ile de France region by approximately £95 million to over £400 million. Overall, it will have approximately £500 million of assets in France, totalling over 900,000 sq m and generating over £40 million of annualised rental income.

The acquisition, following on from the purchase earlier in the year of a 50 per cent stake in the UK Logistics Fund, is further evidence of SEGRO delivering on its strategy, announced in November 2011, to develop its logistics platform across key transportation corridors in the UK and Continental Europe. These transactions mark important steps towards creating a lower risk portfolio which will generate high quality and resilient income focused returns with minimal cost leakage. Following this acquisition, SEGRO will have prime logistics assets under management of approximately £1.4 billion (£1.1 billion at share)2 located in its target markets.

The acquisition, which is expected to complete in September 2012, will be funded using part of the proceeds from the £377 million of non-core asset disposals which SEGRO has announced in the year to date. These proceeds have also been used to pay down debt, consistent with the Group's objective to reduce leverage over the medium term.

Commenting on the acquisition Chief Investment Officer, Phil Redding, said: "This transaction provides us with a rare opportunity to acquire some of the best logistics assets in the two strongest markets in France. The assets deliver an attractive income yield from strong covenants and will allow us to drive operational efficiencies from greater critical mass with the potential to add value over time."

1 Completion is conditional upon the local authorities not exercising their pre-emption right within three months of SEGRO committing to purchase the portfolio of assets. This is a standard procedure for property transactions in France.

2Based on 31 December 2011 valuations

Exchange rate at 29 June 2012: £1/€1.24

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For further information please contact:

SEGRO

Justin Read (Group Finance Director): +44 (0) 207 451 9110

Kate Heseltine (Investor Relations Manager): +44 (0) 207 451 9042

Tulchan

John Sunnucks/David Shriver: +44 (0) 20 7353 4200

About SEGRO:

SEGRO is Europe's leading owner-manager and developer of industrial property. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange. SEGRO's portfolio comprises £5.1 billion (as at 31 December 2011) of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. The Group serves over 1,600 customers spread across many geographies and different industry sectors. It has 5.5 million sq m of built space and a passing rent roll of £334 million (as at 31 December 2011). For further information see www.SEGRO.com