Purchase in Germany

SEGRO SIGNS ITS LARGEST EVER PURCHASE IN CONTINENTAL EUROPE          

SEGRO has exchanged contracts on its largest ever transaction in Continental
Europe, the sale and leaseback from Neckermann (a KarstadtQuelle group company)
of a major office and distribution campus in Frankfurt for €197m, including all
acquisition costs. This follows SEGRO's 2005/06 €163m acquisition of a major
logistics portfolio and landbank from KarstadtQuelle AG in a sale and leaseback
transaction.

The portfolio is in one of SEGRO's core business space markets and provides
development potential in both the medium term and long term, underpinned by a
strong income stream. SEGRO will enhance the value of the site by developing
6,000m² of business space in the short term and subsequently refurbishing and
redeveloping additional areas as they are handed back.

The property is located approximately 4km from the centre of Frankfurt on
Hanauer Landstraße, the main artery running east from the city, near to the new
European Central Bank building, which is currently under construction.

The assets comprise a total of 30 ha and has a built area in excess of 
310,000m², including some 86,000m² of high quality office space. The remainder 
of the site includes high and low bay warehousing, flexible business space, a 
large data centre and some small retail units.

Approximately 83% of the income from the site (occupied entirely by Neckermann)
is secured on leases of at least 10 years, with the remaining space,
principally offices that have been let to other Karstadt group companies or to
Neckermann's contractors, leased on shorter terms, thus representing a
refurbishment / redevelopment opportunity in the medium term.

This transaction builds on SEGRO's 2005/06 purchase of a major warehousing
portfolio across Germany from the KarstadtQuelle group and subsequent corporate
partnering and extensive asset management. KarstadtQuelle announced earlier in
the year that Neckermann, one of Germany's leading mail order and online
retailers, would be demerged from the main group.

Dr. Udo Titz, General Manager, Germany said, "This transaction means that
Germany is now SEGRO's largest market in Continental Europe and demonstrates
our commitment to grow our geographic coverage. We are very confident about the
future of the Frankfurt market, noting the excellent take-up seen over the past
12 months and the historically low ratio of rents being achieved in the
out-of-town market compared to the central business district (CBD)."

Walter Hens, Managing Director, Continental Europe said, "We are delighted to
have agreed this major purchase which will provide us with both an attractive
income yield and future development opportunities. This is the largest
transaction we have ever undertaken on the Continent. It builds on our existing
skill base and market knowledge, and underlines our commitment to major
expansion in Europe and particularly in Germany, where we see very positive
economic signs".

                                    -ENDS-                                     

Contacts:

SEGRO
Michael Waring                 Tel: [phone]

Maitland 
Colin Browne/Peter Ogden       Tel: [phone]

Notes to editors:

About SEGRO

SEGRO is the leading provider of Flexible Business Space in Europe.
Headquartered in the UK, SEGRO is listed on the London Stock Exchange and on
Euronext in Paris. The company is a UK Real Estate Investment Trust ("REIT")
with operations in eleven countries, serving a diversified customer base of
over 1,760 customers operating in a wide range of sectors, representing both
small and large businesses, from start ups to global corporations. With
investment property assets of £5.0 billion (£6.0 billion including trading
properties and development assets) and 4 million sq m of business space, SEGRO
has an annual rental income in excess of £300 million.