TRADE ALERT - International Portfolio July 2026
We are selling a small portion of our position in SEGRO (SGRO / SEGXF) today and reallocating the proceeds into VGP (VGP / VGPBF), further increasing the size of our position in the company.
This is not because our outlook for SEGRO has deteriorated.
Quite the opposite.
SEGRO’s share price has risen sharply since Prologis (PLD), the largest industrial landlord in the world, publicly disclosed its interest in acquiring the company.
We benefited from this surge, but VGP has not enjoyed the same repricing, even though the implications of Prologis’ offer are highly positive for both companies.
As a result, we are taking advantage of the takeover premium in SEGRO and reallocating some of this capital into VGP, which remains deeply discounted.
Prologis Clearly Wants SEGRO
We previously added to our investment in VGP following Prologis’ initial proposal to acquire SEGRO.
That proposal valued SEGRO at approximately £12.6 billion, or 925 pence per share, representing a roughly 25% premium to its unaffected share price. SEGRO rejected it, arguing that the offer was opportunistically timed and significantly undervalued the company.
At the time, we explained that the offer was an important validation of our broader European industrial real estate thesis.
Prologis is not a random private equity buyer looking to make a quick profit. It is the largest and arguably most sophisticated industrial real estate company in the world.
It knows these assets, markets, tenants, replacement costs, development economics, and long-term demand drivers better than almost anyone else.
Therefore, its willingness to pay a large premium for SEGRO was a strong signal that high-quality European industrial landlords were undervalued.
Since then, this signal has become even stronger.
After its original proposal was rejected, Prologis returned twice with improved terms. Its third proposal valued SEGRO at approximately £13.5 billion, or 993 pence per share. This represented a roughly 34% premium to SEGRO’s unaffected share price before Prologis’ interest became public.
SEGRO rejected this proposal as well, arguing that it continued to undervalue its scarce portfolio, development pipeline, and long-term growth prospects.
But Prologis has not simply walked away.
It has continued to publicly make its case and appeal directly to SEGRO’s shareholders, effectively encouraging them to pressure the board to engage in negotiations.
This tells us that Prologis is very serious about acquiring SEGRO.
There is no guarantee that a transaction will happen. Prologis currently has until July 22, 2026, to announce a firm offer or state that it does not intend to proceed, unless the deadline is extended.
But whether or not the takeover ultimately succeeds, Prologis’ persistence is highly revealing.
The world’s largest industrial landlord has repeatedly increased its proposal because it sees substantial strategic and financial value in SEGRO’s European portfolio, development pipeline, land, power capacity, and data center opportunities.
