INDUSTRIAL landlord Segro confirmed yesterday that it is in talks with a Canadian pension fund to set up a joint venture with the bulk of its logistics portfolio in continental Europe.
Segro, a FTSE 250-listed real estate investment trust, is in “advanced discussions” to sell the properties into a new 50-50 venture with Canada’s Public Sector Pension Investment Board.
The firm hopes the venture could expand over time, based on an expected rise in demand for warehouse space in Europe.
Peel Hunt analyst James Carswell said in a note that he expects the deal to take between £200m and £600m off Segro’s balance sheet.
The company has around £1.6bn-worth of warehouses and light industrial properties on mainland Europe.
Last year Segro raised £204.5m by selling off a handful of sites in the UK to American investment firm Harbert Management Corporation, as part of its move out of older sites and further into Europe.
Chief executive David Sleath said in February that the firm is targeting data centres and warehouses that appeal to online retailers.
Shares fell 3.8 per cent to 265.80p yesterday.