Acquisition(s)

Where Business Works

PRESS RELEASE

20 August 2007

                   SEGRO EXPANDS FRENCH OPERATIONS INTO LYON                   

SEGRO continues its expansion in Continental Europe with the acquisition of a
prime quality modern portfolio consisting 50,000 sq m of warehousing and light
industrial buildings on 10 ha of land, located close to Lyon's airport. SEGRO
has agreed to pay €42.5m at an initial yield of 6.7% (rising to 7.5% as the
current vacancy is let up), with the potential to increase this land bank
further. The area is a prime location and the main one for logistics premises
in the region.

Until now SEGRO's French portfolio has been almost entirely centred on Paris -
this active move into France's second major real estate market is based both on
this site specific opportunity and the wider attractions of the Lyon region,
which has increasingly seen high levels of occupier demand for prime light
industrial space - in particular this Eastern Lyon region has secured most of
the recent take up of new accommodation.

More generally the French provinces are becoming more attractive; with growing
occupier demand, with occupier requirements not being met by the relatively low
quality of available commercial stock and with steadily increasing rents. The
flight to quality is now replicating the patterns we have seen in Paris.

The growth potential in the Lyon market is particularly strong. These
properties are located in close proximity to Lyon's international airport St
Exupéry (Eastern Lyon) with good transport links to Grenoble and to Marseille -
from 2010 the airport's TGV station will also connect to Turin and Barcelona.

Most of the 8 buildings are at the Satolas Green Business Park, 1.5 km to the
north of the airport; they were developed between 1998 and 2002 - two of the
buildings are actually within the airport limits. The units are all warehousing
and light industrial type buildings with total office content of in the region
of 18%. The buildings are fully let apart from one building which is currently
unoccupied, representing a vacancy of approximately sixteen per cent. The
buildings were constructed to comply with the requirements of modern occupiers,
in terms of the quality of build, internal finishes and layout, as well as
external architecture. Occupiers include Stryker (US medical products and
services - this site is their French headquarters), Danzas (freight
transporter, now known as Danzas DHL Air & Ocean) and Dimotrans (global
transportation and logistics). The portfolio is being sold jointly by Longbow
S. A. (a subsidiary of Longbow plc) and by the Apollo Real Estate Fund.

Laurent Horbette, General Manager France, said:

"This is an important acquisition in terms of the group's development in
France. Our goal is to make Lyon our second cluster in France after Paris and
to become a major player in the market there. In combination with the property
we acquired as part of the Antalis deal, 15% of the French portfolio is now in
the Lyon region; we plan to open an office there in the near future, with local
staff looking at opportunities in the suburban office, light industrial and
logistics sectors".

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

"We see excellent opportunities for our product in the French regional markets
and Lyon in particular, which we have identified as a one of the key European
economic clusters where we want to expand our business".

                                    -ENDS-                                     

Contacts:

SEGRO
Michael Waring Tel: [phone]

The Maitland Consultancy
Peter Ogden Tel: [phone]

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