Segro is reported to be seeking a joint-venture partner to acquire a stake in a £2.9bn portfolio of logistics and industrial assets, as part of a strategy to recycle capital while retaining management control of the properties.

The proposed structure would see an investor take a significant minority interest, typically around 50%, in a large pool of income-producing assets, with Segro continuing to manage and operate the portfolio. The approach would allow the company to unlock capital without fully disposing of the properties, preserving long-term exposure to core UK and European markets.

Capital released through the transaction would be redeployed into new development opportunities, including logistics schemes and data centre projects, which are more capital-intensive but offer higher growth potential. The strategy aligns with Segro’s recent expansion into data centres, including its 50:50 joint venture with Pure DC to develop a major facility at Park Royal in London.

The move is intended to support Segro’s development pipeline while managing balance-sheet leverage and maintaining financial flexibility. By partnering with external capital, the company can accelerate growth in higher-yielding sectors while continuing to benefit from the income and long-term value of its existing estate.

The likely joint-venture partner is expected to be a large institutional investor such as a sovereign wealth fund, pension fund or insurance group, attracted by the scale and quality of the portfolio, strong tenant covenants and Segro’s track record as an experienced manager. Such investors typically accept lower yields in return for stable, long-term income and alignment with a leading logistics property owner.

If completed, the transaction could be marginally dilutive to near-term earnings but supportive of net asset value and future development growth, as capital is recycled into higher-return projects. Market commentary around Segro’s recent results has already highlighted partnerships and selective disposals as central to funding its logistics and data centre platform.