Brookfield and Segro announce €470 million deal to split Tritax EuroBox

In a significant move within the European logistics and industrial real estate market, Brookfield Asset Management and Segro have announced an agreement to split Tritax EuroBox, the pan-European logistics specialist, in a transaction valued at approximately €470 million. The deal, aimed at boosting both firms’ portfolios in Europe, involves the division of Tritax’s assets, marking a strategic expansion for Brookfield and Segro in high-demand logistics real estate across key European markets.

Under the terms of the agreement, Brookfield will acquire roughly half of Tritax EuroBox’s prime assets, enhancing its logistics footprint across Europe amid a sustained e-commerce boom and increased demand for large-scale distribution centers. Segro, a UK-based real estate investment trust and leading developer of logistics facilities, will take over the remaining assets, strengthening its position as one of Europe’s largest logistics property owners.

The assets being split between Brookfield and Segro include Tritax’s strategically located logistics sites across Germany, Spain, Italy, and the Netherlands. These markets have seen rapid growth in demand for high-quality logistics space, driven by the expansion of online retail and the evolving supply chain needs of major corporations. For Brookfield, this acquisition aligns with its strategy to deepen its reach within European logistics, a sector it has identified as one of its highest-growth investment areas.

Segro, which has a significant existing portfolio across Europe, expects this acquisition to complement its existing assets and expand its client offerings, particularly in the core European logistics corridors. The company has been focused on sustainable development, and Tritax’s modern, high-quality assets are expected to integrate well with Segro’s existing portfolio.

Tritax EuroBox was created to capitalize on Europe’s rapidly evolving logistics sector, which has experienced record demand due to structural shifts in consumer habits, particularly post-pandemic. The €470 million deal between Brookfield and Segro signals continued confidence in the sector’s growth potential despite broader economic uncertainties.

Analysts view the transaction as indicative of a wider trend among institutional investors targeting logistics and industrial assets, seen as more resilient against economic downturns due to stable cash flows from long-term leases with creditworthy tenants.

For both Brookfield and Segro, the split of Tritax EuroBox underscores an optimistic outlook on logistics real estate in Europe, where vacancy rates remain low, and rental growth has outpaced other property segments. With both companies emphasizing sustainable operations, the deal also reflects an industry-wide push toward greener logistics solutions.

This acquisition represents a bold strategic step for Brookfield and Segro, poised to reshape the European logistics real estate landscape by reinforcing their presence in major logistics hubs. The deal is expected to close following regulatory approvals, with both companies planning to announce further integration strategies for the assets in the coming months.