Segro Expands into Italy

24 August 2007

                           SEGRO EXPANDS INTO ITALY  
                          

  * New office opening in Milan
   
  * New Italy Country Manager recently appointed
   
  * First major acquisition in Italy announced today
   
SEGRO plc, Europe's leading provider of flexible business space, today
announces its first strategic push into Italy with the imminent opening of a
new office in Milan and the acquisition of a 70,689 sq m business park in
Northern Italy with a further 50,000 sq m for development. SEGRO has also
recently announced the appointment of Marco Simonetti as Country Manager, who
will be responsible for the development of SEGRO's growing presence in the
country. Together, these announcements signify a step change in SEGRO's
presence in Italy.

This is SEGRO's first strategic acquisition in Italy and adds to SEGRO's three
existing sites located in Rome, Parma and Bologna acquired as part of the
Antalis sale & leaseback in 2006. From its Milan base, SEGRO will focus on
developing flexible business space along the main motorway corridors in
northern Italy.

The site was acquired from Europa Capital Partners, an independent real estate
fund management group operating from offices across Europe, for €84.5m at an
initial yield of around 7.4%. The yield is expected to rise once SEGRO has
fully exploited the development potential of the site. The business park is
located at Vimercate, North East Milan and sits adjacent to the Milan A51
eastern bypass providing excellent frontage and visibility to the three main
buildings which are used exclusively as offices. The business park is in a well
established business zone where many of the leading technology and
communications sector businesses are also based, with firms such as Cisco, IBM
and Microsoft nearby.

The site comprises a mixture of office, light industrial, laboratory and
related space on a 15.2 hectare site, with Alcatel Lucent occupying the
existing buildings on a lease that runs for at least another five years. The
adjacent site is Le Torre Blanche, a mixed use development with shopping
centre, offices, four star hotel, and a residential and leisure complex.

In the medium term SEGRO will develop up to a further 50,000m² of Business Park
units to the rear of the site on a phased basis as flexible business space
whilst retaining the campus feel of the park.

Walter Hens, SEGRO Executive Director, and Managing Director of Continental
Europe, said:

"We are delighted to have completed this transaction which now gives us a real
foothold in the Italian market combined with strong development potential
underpinned by a sound income stream. We see excellent opportunities in Italy
and are very excited about the forthcoming opening of our office and the recent
appointment of Marco Simonetti as Country Manager, announced last week".

For further information please contact:

SEGRO                  Tel: [phone]      Michael Waring            
                                                                               
Maitland               Tel: [phone]      Colin Browne/Peter Ogden  


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 1,500 customers operating in a wide range of sectors, representing both
small and large businesses, from start ups to global corporations. With total
property assets of £4.9 billion (including trading properties and development
assets) and 3.3 million sq m of business space, SEGRO has an annual rental
income of £215 million and an average lease length to expiry of 8.6 years. Note
these facts are as at the end of 2006, adjusted to exclude SEGRO's former US
biotechnology real estate business, the sale of which was completed in August
2007. www.segro.com