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Segro secures €470m deal for Tritax Eurobox assets after Brookfield wins takeover bid

Segro has not upped its offer for logistics-focused real estate investment trust Tritax Eurobox, despite being outbid by Canadian investment manager Brookfield

SEGRO Logistics Park, East Midlands Gateway(Image: ProCon)

Segro has conceded defeat in the competition for Tritax Eurobox, with Brookfield emerging as the triumphant bidder after Segro did not raise its takeover offer.

Despite this, Segro revealed today that it has acquired approximately one third of Tritax Eurobox's assets for 470 million euros (£389 million), as reported by .

This development led to a two per cent dip in Tritax's stock price this morning. However, the trust's shares are still trading at an 11 per cent discount to their net asset value.

Back in September, Segro had bid £552 million for the FTSE-250 listed real estate investment trust, a figure which would rise to £1.1 billion when factoring in Tritax's net debt - a proposal initially recommended by the board.

Last month, however, Brookfield made a play with a six per cent higher offer than Segro, securing the favour of Tritax's board.

"Bringing Tritax under private ownership will both better position it for further investment into existing assets, coupled with the benefits that accrue from being part of a scaled, better capitalised and actively growing real estate platform," Brookfield stated at the time.

Whilst there was speculation on whether Segro would counter, todays statement confirms they have withdrawn, but not without negotiating to take over a substantial portion of the trust's portfolio.

The deal includes six locations in Germany and the Netherlands, representing 31 per cent of the total value of Tritax Eurobox's portfolio.