London real estate stocks lift FTSE 250 as Segro rejects Prologis bid

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FTSE 250 rises on Segro rebuff

Highlights

FTSE 350 real-estate investment trusts index surges 6% and the broader real-estate sector rises 5.3%, led by Segro jumping 15.6% after rejecting Prologis' bid.
Liontrust gains 12.2% after reporting a slowdown in net outflows, while Harworth and Tritax both advance 5.6%, and Berkeley rises 5.1% on strong demand outlook.
Traders expect the Bank of England to hike rates by at least 25 basis points before year-end amid persistent inflation, despite some officials advocating an extended hold.

Property rally drives UK market moves

As reported by Reuters, property shares lead gains in London trading, with the FTSE 350 real-estate investment trusts index jumping 6% and the broader real-estate sector adding 5.3%. Harworth and Tritax each rise 5.6%, reflecting wider strength across the segment.

Segro climbs 15.6% to become the top gainer on the FTSE 100 after rejecting Prologis' bid. Prologis is urging Segro shareholders to press the board to engage, arguing that the UK-listed logistics landlord is undervalued.

The benchmark FTSE 100 is flat by 0755 GMT, while the domestically focused FTSE 250 edges up 0.1%. Elsewhere, Liontrust jumps 12.2% after saying net outflows in the current quarter have slowed as the fund manager expands globally and draws more institutional money.

Berkeley rises 5.1% after pointing to a strong demand outlook. Primary Health Properties adds 3% after saying it is in advanced talks with an unnamed investor over a new joint venture involving its private hospital assets.

Politics and rate outlook stay in focus

Investors are also tracking domestic political developments after Prime Minister Keir Starmer's resignation earlier this week opens the way for a leadership contest. The process could result in former Greater Manchester mayor Andy Burnham taking the role in July or September.

On the macro side, traders anticipate that the Bank of England will raise borrowing costs by at least 25 basis points before year-end, according to data compiled by LSEG. The expectations reflect inflation pressures linked to the Middle East conflict, although policymaker Alan Taylor says an "extended hold" would be the right response as labour market data points to cooling conditions.

We previously reported on Prologis’ all-share takeover approach for Segro, which the UK logistics landlord rejected despite a premium valuation and a clear timetable under UK takeover rules. Our earlier article also noted that Prologis set a deadline to either make a firm offer or withdraw, keeping investors focused on whether Segro’s board will re-engage and what consolidation could mean for the logistics real-estate sector.

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