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Shareholders Just Approved a £14.3 Billion Warehouse Takeover. Why the World's Biggest Landlord Wants Even More
- On September 30, 2026, 98% of voting Segro shareholders approved the company's takeover by Prologis.
- The deal values Segro at about £14.3 billion, or 1,031.7 pence per share (1,054.3p including the final dividend).
- Segro shareholders get 0.0920 new Prologis shares per Segro share, or can choose 258p in cash plus 0.0690 Prologis shares. Up to £3.5 billion is available in cash.
- The price is a 14.4% premium to Segro's net asset value of 902p per share.
- The deal still needs regulatory clearance in the UK and is expected to close in the first half of 2027.
The vote
On Wednesday, September 30, Segro's shareholders met to decide whether to sell the company. 98% of those who voted said yes.
Segro owns warehouses, industrial estates and data centres across the UK and Europe. The buyer, San Francisco-based Prologis, is already the largest owner of warehouses in the world.
The deal was first agreed in the summer after Prologis raised its bid several times. This week's vote was the last big hurdle on the shareholder side.
The terms
| Deal value | About £14.3 billion |
| Value per Segro share | 1,031.7 pence |
| Including final dividend | 1,054.3 pence |
| All-share option | 0.0920 Prologis shares per Segro share |
| Cash-and-share option | 258p cash + 0.0690 Prologis shares |
| Premium to net asset value | 14.4% |
| Expected completion | First half of 2027 |
Prologis also plans to list its shares in London before the deal closes, so UK investors can keep holding it easily.
Why Prologis wants it
Warehouses near cities are hard to build. Online shopping needs distribution centres close to where people live. In London, Paris and other big European cities, there's almost no land left for them. Segro owns a lot of that scarce space.
Data centres. Segro's estates, especially around west London, host a large cluster of data centres. With AI driving demand for computing power, that land has become much more valuable. Because data centres are involved, the deal is also subject to UK national security review.
Scale. Together, the two companies will manage roughly 368 million square feet of logistics space in Europe. Prologis CEO Daniel Letter said the deal combines Segro's "exceptional portfolio and customer relationships" with Prologis's global platform.
Why Segro shareholders said yes
Property companies have had a hard few years. When interest rates rise, the value of buildings falls and borrowing gets more expensive. Many European REITs have traded below the value of the property they own.
Prologis offered 14.4% more than Segro's net asset value. For shareholders who had watched the stock trade at a discount, a premium was a good outcome.
The bigger picture for REITs
This deal is happening in a tough market for property.
The UK's 30-year government bond yield just hit 6% for the first time since 1998. US Treasury yields are at multi-decade highs too. When safe bonds pay 5% or 6%, a REIT paying a 4% dividend has to offer something extra, like growth.
That's why big, well-funded REITs are buying smaller ones. Prologis has an A-grade credit rating and can borrow more cheaply than most. Paying mostly in its own shares means it doesn't have to borrow much at today's rates.
We looked at the income comparison in REITs vs 5% Treasuries.
What it means for you
If you own Segro shares: your broker will convert them automatically when the deal closes. You'll need to choose between all shares or the cash-and-share mix if you want the cash. Check for tax consequences in a non-registered account.
If you own Prologis: the company says the deal will have minimal effect on its per-share cash flow in the first year. The payoff is supposed to come later, from rents and data-centre development.
If you own a REIT ETF: Prologis is one of the largest holdings in most US and global real estate funds. You're a part-owner of this deal already.
If you're new to real estate investing: you don't need to buy a building to own property. A REIT or a REIT ETF gives you a slice of thousands of buildings and pays you a share of the rent. Start with REITs Explained.
The lesson
When a whole sector is out of favour, strong companies go shopping. Takeovers like this one are a sign that the buyers, who know the assets best, think prices are attractive. That isn't a guarantee that REITs will rebound soon. But it's a useful signal, and a reminder that "unloved" and "worthless" are two different things.
Frequently asked questions
Is Prologis buying Segro?
Yes. Prologis agreed to acquire Segro in a deal worth about £14.3 billion. Segro shareholders approved it on September 30, 2026, with 98% of votes in favour. It still needs regulatory clearance and is expected to complete in the first half of 2027.
How much are Segro shareholders getting?
The offer values each Segro share at 1,031.7 pence. Shareholders receive 0.0920 new Prologis shares for each Segro share, or they can elect a mix of 258 pence in cash and 0.0690 Prologis shares. They also keep Segro's interim and final dividends.
What is a REIT?
A real estate investment trust is a company that owns income-producing property, such as warehouses, apartments or data centres, and pays most of its rental income to shareholders as dividends. You can buy REIT shares on a stock exchange like any other stock.
What happens to my shares when a company I own is taken over?
If shareholders and regulators approve, your shares are exchanged for whatever the buyer offered: cash, shares in the buyer, or a mix. Your broker handles it automatically. In a taxable account, it can trigger a capital gain, so check the tax rules where you live.
Are REITs a good investment when interest rates are high?
High rates are a headwind. REITs borrow to buy property, so their costs rise, and their dividends look less attractive next to a 5% government bond. But REITs with strong tenants and rising rents can still do well. Many investors hold them as a modest part of a diversified portfolio.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Oct 3, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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