Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • SEGRO receives BUY rating with a 12-month average target price of GBp 831.81, reflecting a 24.60% upside

  • Panmure Liberum’s Timothy Leckie places a BUY rating with a GBp 1,025 target — 53.54% above current price

  • Joint venture with Pure DC announced to build £1 billion, 56MW fully fitted data centre in West London

SEGRO PLC (LSE:SGRO), a leading UK-based commercial real estate investment trust (REIT), has received a reaffirmed BUY rating from Panmure Liberum analyst Timothy Leckie. The stock, currently trading at GBp 667.6, has been assigned a target price of GBp 1,025, implying a 53.54% upside.

Overall, SEGRO holds a “BUY” consensus recommendation, with a current target price of GBp 831.81, which reflects a 24.60% upside. 

This bullish sentiment likely to be followed by SEGRO’s strategic announcement of a major joint venture with Pure Data Centres Group Ltd (“Pure DC”), owned by Oaktree Capital, marking its entry into the fully fitted data centre market.

Landmark Data Centre Development Worth £1 Billion

On 2 July 2025, SEGRO unveiled the formation of SEGRO Pure Premier Park Data Centre Limited, a 50:50 joint venture with Pure DC. The partners aim to develop a 56MW data centre on a 10-acre site in Park Royal, West London—one of Europe’s most constrained data centre zones in terms of land and power.

The project will represent SEGRO’s first foray into fully fitted data centres, departing from its long-standing practice of delivering powered shells. This shift is expected to allow SEGRO to capitalise on rising global hyperscaler demand and enhance its value proposition in high-barrier-to-entry urban locations.

SEGRO will contribute the land and invest approximately £150 million in cash equity over the construction period. Total gross capital investment is projected to be around £1 billion, with SEGRO and Pure DC aiming for a 9%–10% net yield on cost.

Growth Outlook and Long-Term Returns

The data centre project is expected to be fully operational by 2029 and will significantly increase SEGRO’s infrastructure offering and earnings visibility. It will create hundreds of construction jobs and drive community benefits through skills development and sustainability initiatives, aligning with SEGRO’s “Responsible SEGRO” framework.

This new venture leverages SEGRO’s 2.3GW land-enabled power bank and reflects the company’s strategic pivot to higher-yield, capital-intensive developments.