LONDON, June 24, 2026, 10:42 BST
FTSE 100 was steady near 10,430 late Wednesday morning, with the FTSE 250 up just 0.03% at 22,934. Landlords traded higher—FTSE 350 REIT index surged 6%. Segro led with a 16% jump, Tritax Big Box and Harworth both up 5.6%.
Segro makes up 20.35% of the FTSE EPRA Nareit UK REITs Index, according to FTSE Russell’s May 29 factsheet. That’s the biggest share in the index. Its 15.6% early move this year alone could lift the benchmark by about 3.2 percentage points. A successful takeover and delisting would see nearly one-fifth of the index need a new component.
This is important for tracker funds that mirror the benchmark. BlackRock’s iShares UK Property UCITS ETF reported assets of 456.2 million pounds on June 23, holding 28 names as of June 22. With a 20% benchmark weight, that’s close to 91 million pounds. If an index name gets deleted, a big reallocation has to happen across what’s left.
Stifel’s John Cahill pointed out Segro’s £10 billion market cap is just under 20% of the UK REIT index. “If Segro were to be taken over, it would represent a serious challenge to the long-term viability of the UK listed property sector,” he said. Cahill said Prologis could boost its offer but wasn’t aware of any plan to do that. Proactiveinvestors NA
Prologis is offering 0.084 new Prologis shares for every Segro share in its all-share bid. The deal values Segro at 12.6 billion pounds, or 925 pence a share, using Tuesday’s close. That is a 24.6% premium to Segro’s 742 pence finish. Segro holders would keep 10.5% of the combined company. The 925-pence offer is also in line with Segro’s last stated EPRA net tangible assets per share, which is a common property NAV metric.
Prologis said Segro traded at an average 19% discount to asset value over the last two years. Prologis put its own net debt at 22% of enterprise value. Segro’s was 37%. That lets the U.S. company offer a hefty premium to Segro’s share price, while not paying above Segro’s last reported asset value.
Segro’s board called the bid well below what it sees as fair value, saying the timing aimed to take advantage of a disconnect between U.S. and European property prices. Segro shares were near 868 pence in morning trade—roughly 6% under the bid’s declared value.
But it’s not clear if a higher bid is coming. “In our view Prologis would be reluctant to increase the offer materially and take it above NAV,” said Oli Creasey, head of property research at Quilter Cheviot. Panmure Liberum’s Bjorn Zietsman said he questioned whether the approach “adequately compensates shareholders.” Prologis has until July 22 to make a firm offer or walk. The all-share payment means the value in sterling will change along with Prologis’ share price and the pound-dollar exchange rate. If Prologis pulls out, most of Segro’s gain and some of the sector move could vanish. Reuters
