UK real estate investment trust Segro has exercised its option to buy a management platform from Roxhill Development Group for an undisclosed sum.
In 2016, Segro and Roxhill entered a partnership that gave Segro phased access, through option agreements, to a portfolio of big box warehouse development sites in the Midlands and South-East regions of the UK.
Under the same agreement, Segro had the right to acquire Roxhill Management Rugby Limited (RMRL) after a period of 30 months.
The latest acqusition, which is scheduled to complete later this year, exercises this right and will create a single team, based in the Midlands, focused on the management and development of UK big box warehousing.
Since the original agreement was signed, Segro has commenced development of Segro Logistics Park East Midlands Gateway (SLPEMG) and is assessing the near-term development potential of a further five sites.
Segro and Roxhill have secured customers for 250,000sqm of new big box warehouse space and construction of the new rail freight terminal has already commenced.
David Sleath, Segro Chief Executive, said: “By combining Segro’s and Roxhill’s teams, we will have the resources to deliver on our strategy to grow our big box warehouse position in the two strongest logistics regions in the UK and the expertise and network to create an on-going pipeline of schemes in the future.
“We will be even better placed to meet occupier demand for modern, well-located warehouses which are an increasingly critical component of the national infrastructure dealing with the impact of e-commerce.”
David Keir and Jason Dalby, founders of the Roxhill management team, said: “We are pleased that Segro has taken up their option to acquire RMRL which is testament to the quality of the staff and the progress that they have made on the joint venture sites since 2016.
“The pipeline of land for development at Segro’s disposal is market leading and affords an exciting opportunity for both Segro and the RMRL employees alike.”