SEGRO plc (LSE:SGRO) is advancing its data centre development strategy with a new pre-let agreement on the Slough Trading Estate and planning approval for a joint venture project in West London.
The company has agreed to build a powered shell data centre facility for an existing customer within the Slough Trading Estate, widely regarded as Europe’s largest data centre cluster. The planned three-storey building will span approximately 30,000 square metres and meet BREEAM Excellent sustainability standards. It will be supported by 50 MVA of contracted power, enabling SEGRO to maximise the value of a relatively small 3.5-acre plot within its established Slough campus.
In a separate development, SEGRO and joint venture partner Pure Data Centres Group have received planning committee approval for SEGRO’s first fully fitted data centre at SEGRO Premier Park in Park Royal, West London. The facility is expected to benefit from 70 MVA of incoming power and incorporate energy-efficient closed-loop liquid cooling technology. The project represents a key step in SEGRO’s broader plan to deliver a data centre development pipeline exceeding 2.5 GW and to further expand its presence in Europe’s digital infrastructure sector.
Looking ahead, the company’s outlook is supported by signs of strengthening financial performance, including a rebound in revenue and profit alongside manageable leverage levels. Positive technical indicators also support sentiment. However, these factors are partly balanced by only moderate valuation metrics for a REIT and some concerns around financial quality, including earnings volatility and a recent divergence between cash flow and reported earnings. Management’s latest earnings call nonetheless provided constructive guidance and highlighted a credible long-term growth pipeline, albeit with execution risks.
More about SEGRO plc (REIT)
SEGRO plc is a UK-based real estate investment trust specialising in the ownership, management and development of modern warehousing, industrial facilities and data centres across the UK and seven additional European markets. The company’s portfolio, valued at approximately £22.0 billion and covering around 10.9 million square metres, is concentrated in major urban areas and strategic transport and digital infrastructure hubs. Its properties support a diverse range of customers including retailers, manufacturers, logistics operators and technology companies seeking high-quality, sustainable industrial and logistics space.
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