Segro and Roxhill Development Group have created a partnership which will provide Segro with access to a portfolio of big box logistics warehouse development sites in the South East and Midlands.
Roxhill and Segro have previously established a successful joint venture in 2013 at the Rugby Gateway site. Roxhill Management Rugby Limited (‘RMRL’) will act as development manager to the new partnership and will work exclusively with Segro once Roxhill has completed a number of existing development projects with other partners.
The sites contained in the transaction are at various stages of planning, and the terms of the transaction allow Segro to phase its investment. An initial investment, the majority of which is deferred, will be payable in consideration for a 50% share of Roxhill's interests in options over the sites. Under the terms of the agreement, Segro will fund planning fees and development management costs.
Should all of the sites become fully developed, the total potential capital expenditure (including land and infrastructure) is estimated to be around £800m (1.025bn) over a 10 year period which will deliver over 10 million ft² (930,000m²) of big box logistics warehousing.
Segro’s CEO, David Sleath, commented: “Roxhill is a market-leading developer and a partner we know, trust and for whom we have a high regard. This partnership establishes a clear path for us to achieve the scale we desire in the attractive UK big box logistics market. We are convinced that this market has very favourable long term prospects given the lack of quality supply and increasing demand from retailers and logistics operators for modern space in the right locations.”
