PARIS SITE TOURMARCO SIMONETTIBUSINESS UNIT DIRECTOR, SOUTHERN EUROPE

Agenda

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Agenda

• Presentation French business / Q&A – 9.00-9.30

• Site Visits 10.00 – 12.00am

• Buffet Lunch at Marriot Bourget 12.00 – 12.45am

• Site Visits 1pm – 2pm

• Stop at CDG airport – 2.15pm

• Stop at Gare du Nord – 3.30pm

Eric Veron – General Manager Vailog

Marco Simonetti – Business Unit Director Southern Europe

FRANCEMARCO SIMONETTIBUSINESS UNIT DIRECTOR, SOUTHERN EUROPE

Portfolio strategically placed on France’s logistics “spine”

4

Portfolio Description – France

Portfolio size 1.1m sq m completed assets

Portfolio value (based on assets under management)

€1,194m including land and development€984m completed assets

True equivalent yield 5.7%

Headline rent (share) €47m pa

Vacancy (by ERV) 2%

WAULT to break/expiry

4.8 / 6.5 years

Paris IdF, €854m

Lyon, €199m

Marseille, €141m

€1,194mAUM

France portfolio locations focused on Paris, Lyon and Marseille

Big box, €670m

Urban, €314m

€984mAUM

All assets Completed assets

Strong portfolio performance vs benchmark

Portfolio Benchmark Relative

3 year 15.8 11.1 +4.9

5 year 10.9 8.6 +2.1

5

-5

0

5

10

15

20

25

2012 2013 2014 2015 2016 2017

Tota

l Pro

perty

Ret

urn,

%

Relative return Benchmark SEGRO

SEGRO France portfolio total property return vs MSCI-IPD benchmark, 2012-17, %

Source: MSCI-IPD

France portfolio TPR vs benchmark, 2012-17(%)

TPR and benchmark calculated annually by MSCI-IPD

Favourable occupier supply-demand dynamics

France prime big box warehouse rental values (new or redeveloped space), 2017(€ per sq m per year)

Lille38–46

Ile de France45–65

Lyon45–46

Marseille41–43.5

France logistics supply-demand dynamics(m sq m)

Source: CBRE6

0.0

0.5

1.0

1.5

2.0

2.5

0.0

1.0

2.0

3.0

4.0

5.0

2010

2011

2012

2013

2014

2015

2016

2017

No. of years’ supply

Take

-up

/ av

aila

bilit

y, m

sq

m

Average availability

Take-up

Available space as multiple of annual take-up

Growing investor demand for prime warehouses

7Source: CBRE

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2009 2010 2011 2012 2013 2014 2015 2016 2017

Industrial Logistics

0%

2%

4%

6%

8%

10%

12%

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

10.0%

6.0%

4.75%

France warehouse investment volumes, 2008-17(€ billions)

France prime big box yields

Paris-IdF — one of Europe’s most powerful economic centres

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0.0

0.5

1.0

1.5

2.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Lille, 7%

Paris, 39%

Lyon, 11%

Marseille, 7%

Others, 36%

Average: 0.9m sqm

2017 take-up by region

Paris region take-up, million sq m€649bn

12million

1million

50%

GDP: 30% of France GDP

Population: 20% of France

Companies, employing 6.1m people

Proportion of SEGRO France portfolio

Source: INSEE, French Ministry, Invest in France, ADP, ORIE, SNCF, CBRE

Grand Paris and Olympics infrastructure enhance occupier demand

SEGRO Assets

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Portfolio of big box and urban warehousing serving Paris Ile de France

10

1st Ring Road: Périphérique

2nd Ring Road: Motorway A86

3rd Ring Road: N104

x

x

Completed asset

Under construction

SEGRO Business Park La Courneuve

SEGRO Logistics Park Garonor

SEGRO Logistics Park Gonesse (Sedifrais)

SEGRO Logistics Park Marly-la-Ville

SEGRO Logistics Park Saint-Witz SEGRO Logistics Park Wissous

8

6

20

4

12

13

French Portfolio – Lyon and Marseille

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SEGRO Logistics Park Genas Vailog Saint-Quentin-Fallavier SEGRO Logistics Park Clesud

SEGRO Logistics Park Corbas Merieux SEGRO Logistics Centre Pusignan SEGRO Logistics Park Saint-Martin-de-Crau

Driving returns through active asset management and development

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Significant increase in SEGRO development activity

0

20

40

60

80

100

2013

2014

2015

2016

2017

1H18

Und

erco

nstru

ctio

n

Dev

elop

men

t com

plet

ions

, 00

0 sq

m

74,195 sq m £5.8m 8.4%

Current development pipeline (June 2018)

Space under development (100%)

Potential headline rent (share)

Estimated yield on cost

£4m

Potential rent from future pipeline (share)

SEGRO Logistics Centre Mitry-Mory

0%2%4%6%8%

10%12%14%16%

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Jan-

15

Jan-

16

Jan-

17

Jan-

18

Vac

ancy

rat

e

SEGRO France

Paris market

SEGRO France vacancy rate consistently below Paris market

SITE TOUR

Site Visits

14

14

19

20

Paris

Gennevilliers

Gennevilliers Le Blanc-Mesnil

Garonor

Aulnay-sous-Bois

Paris DC6 - Gennevilliers

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• Cross-dock parcel delivery warehouse

• Development completed in September 2017

• Pre-let to FedEx on a twelve year lease

• Prime location near to Paris’ inland river port

Gennevilliers

Ownership SEGRO Vailog

Occupiers FedEx

Value (30 June 2018) €15.5m

Area 12,600 sq m

Headline rent Confidential

ERV Confidential

Vacancy (30 Sept 2018) 0.0%

WAULT (Break / Expiry) 10.9 / 10.9

Paris DC7 “Paris Air 2” – Gennevilliers

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• Multi-storey urban logistics warehouse

• 50,000 sq m pre-let let to IKEA

• 12,800 sq m pre-let to Leroy Merlin

• Completion in December 2018

• Fully leased at above appraisal rental levels

Ownership SEGRO Vailog

Occupiers IKEA, Leroy Merlin

Value (30 June 2018) €46.0m

Area 62,800 sq m

Headline rent n/a

ERV n/a

Vacancy (30 Sept 2018) 0.0%

WAULT (Break / Expiry) n/a

Carré des Aviateurs – Le Blanc Mesnil

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Picture SPIRIT

Picture Drancy

Le Blanc-Mesnil

• Multi-let urban warehouse park

• Acquired by SEGRO in 2003 through a sale & leaseback scheme to Baxi, a French boiler manufacturer

• Prime location close to Paris and CDG Airport

Ownership SEGRO

Occupiers Multi-let

Value (30 June 2018) €71.2m

Area 37,800 sq m

Headline rent €4.2m

ERV €4.4m

Vacancy (30 Sept 2018) 6.1%

WAULT (Break / Expiry) 2.6 / 5.2 years

SEGRO Logistics Park – Garonor

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Picture SPIRIT

Picture Drancy

Aulnay-sous-Bois

• Multi-let urban warehouse park• B23 acquired in 2008 from DHL (sale &

leaseback)• B22 acquired in December 2011 from FEL• Refurbishment works completed in 2014• Prime location adjacent to one of the most

important European motorways (300m frontage on the main French motorway A1)

• Close proximity to Charles de Gaulle & Bourget Airports

Ownership SEGRO

Occupiers Multi-let

Value (30 June 2018) €49.7m

Area 35,700 sq m

Headline rent €3.0m

ERV €3.1m

Vacancy (30 Sept 2018) 4.0%

WAULT (Break / Expiry) 1.3 / 5.1 years

SEGRO Logistics Park – Aulnay-sous-Bois

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• Multi-let logistics park

• Building A - pre-let signed with Carrefour: completed in March 18

• Building B - pre-let signed with Chronopost: completed in July 2018

• Building C - awaiting future pre-let

Picture SPIRIT

Picture Drancy

Aulnay-sous-Bois

Ownership SEGRO

Occupiers Carrefour, Chronopost

Value (30 June 2018) €78.6m

Area 37,700 sq m

Headline rent €3.8m

ERV €3.7m

Vacancy (30 Sept 2018) 0.0%

WAULT (Break / Expiry) 9.8 / 11.6 years