UK's Segro to develop Paris data centre under newly formed JV

July 8 (Reuters) - British warehouse landlord Segro said on Wednesday it would form a joint venture to develop a data centre in Paris, and set a target of 50 pence in adjusted earnings per share by 2030, versus the 36.6 pence delivered last year.

The firm, which has received a £12.6 billion ($16.8 billion) takeover proposal from U.S. logistics firm Prologis, said it would develop the data centre through a 50-50 partnership with UK-based Pure Data Centres Group (Pure DC). 

"Our data centre pipeline is well-placed to accelerate rapidly as hyperscaler demand remains focused on Europe's key Availability Zones, where land with power certainty and planning consents is extremely constrained," CEO David Sleath said.

The project marks Segro's second partnership with Oaktree-backed Pure DC after the companies signed a joint venture in March 2025 to develop a £1 billion data centre in west London. 

Segro said it expects data centres to account for more than 30% of its net rental income by 2035, up from 7% currently.

Its data centre projects offer near- and medium-term opportunities worth up to £460 million in potential income, the company added.

Separately, Segro said new headline rent secured in the first half rose to £53 million from £31 million a year earlier, while its occupancy rate fell 0.4 percentage points to 94.5%.

The company also reiterated its opposition to Prologis' proposal, calling it "opportunistic, one-sided and inadequate", grounds on which it rejected a previous bid.

“Constructive engagement between the companies remains the best path to allow Segro shareholders to participate in the upside of a larger, better-capitalised global platform," Prologis said in a statement emailed to Reuters.

"A combination with Prologis is the best option for maximising long-term value for Segro shareholders and wider stakeholders."

($1 = 0.7486 pounds)

(Reporting by Prerna Bedi in Bengaluru; additional reporting by Tuhina; Editing by Sonia Cheema and Mark Potter)