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INDUSTRIAL & LOGISTICSMARKET OVERVIEWGermany

Düsseldorf, 26.06.2015

Prepared for SEGRO plc

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ECONOMIC OVERVIEW

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3 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

ECONOMIC OVERVIEWGDP

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Forecast

Real GDP, Y/Y in %

Source: Destatis, Consenus Economics

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4 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

LOGISTICS INDICATOR

20

40

60

80

100

120

140

160

180

Q1

2007

Q3

2007

Q1

2008

Q3

2008

Q1

2009

Q3

2009

Q1

2010

Q3

2010

Q1

2011

Q3

2011

Q1

2012

Q3

2012

Q1

2013

Q3

2013

Q1

2014

Q3

2014

Q1

2015

Business confidence Situation Forecast

Confidence is rising in the Logistics sector

Indicator (Index)

Source: BVL, ifw

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INDUSTRIAL & LOGISTICS MARKET IN GENERAL

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6 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

GERMAN TOP 20 LOGISTICS REGIONSLogistics attractiveness and intensity by regions (ZIP codes)

Source: Fraunhofer SCS

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7 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

TYPICAL LEASING CONDITIONSTypical lease length: 3 - 5 years for logistics companies

5 - 7 years for production companies7 - 10 years for built-to-suit production and logistics If the lease is for a limited period, then a tenancy cannot be terminated before that time unless tenancy law provides otherwise.

Average prime rents: EUR 5.70 / sq m / mth for Top 5 (Berlin, Düsseldorf, Frankfurt, Hamburg, Munich)EUR 4.75 / sq m / mth for Germany othersin EUR (5,000 sq m unit)

Tenant’s incentives: 1 months rent free for each year of occupancy (typically)

Indexation: CPI Germany

Landlord's liabilities for premises: Internal repairs are tenants’ responsibility, while external, structural and/or common areas are landlords’ responsibilities

Service charges: Service charges are paid above the rent (on average EUR 0.80 - 1.50/ sq m / mth) and include: Building insurance, property taxes, 24h security, landscaping, property management, maintenance of the common parts of the property (including snow removal), maintenance and inspections of buildings and equipment

Minimum size for built-to-suit: 5,000 sq m

Guarantee: Landlord requires a cash deposit, bank guarantee or parent company guaranteeSource: CBRE Research

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8 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

INDUSTRIAL & LOGISTICS MARKET FIGURES

Total GER Top 5 Germany other

Total stock (sq m)* 58,387,900 28,135,500 30,252,400

New supply (in 2008 - 2013) (sq m)* 12,650,100 4,721,500 7,928,600

Take-up 2014 (excl. renegotiations) (sq m) 5,280,800 1,828,100 3,452,700

Market Rents (EUR/sq m/month) 2.50-6.50 3.50-6.50 2.50-6.20

Average Prime Rent (EUR/sq m/month) 5.10 5.70 4.75

Key indicators for Germany and Top 5 markets

Indicator (Index)

*Investable stock for institutional investors and tenants; units ≥ 8,000 sq m and year of construction from 1988 onwardsBased on data from Fraunhofer SCS 2013 Source: CBRE Research, RIWIS

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9 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

Investable logistics stock ~58.4 million sq m Top 5 account for 48% of total stock

INDUSTRIAL & LOGISTICS MARKET OVERVIEW

6,697

6,685

6,347

5,501

2,9063,4492,862

23,941

Hamburg Berlin/BrandenburgFrankfurt / Rhine-Main Duisburg/Düsseldorf (Lower Rhine area)Munich Cologne BightCentral Ruhr area Rest of Germany

Source: CBRE Research, Fraunhofer SCS 2013

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10 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

Germany 2012: 4.555m sq m, 2013: 4.715m sq m, 2014: 5.280m sq mINDUSTRIAL & LOGISTICS TOTAL TAKE-UP

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2008 2009 2010 2011 2012 2013 2014 Q12014

Q12015

Germany Ø-Take-up 2008 - 2014

Take-up Germany in sq m

Source: CBRE Research

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11 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

825 1,164 1,256 1,464 1,216 1,335 1,2431,768 2,192 1,728 1,683 1,828

1,0631,229 1,388

1,727 2,617 2,209 1,933

2,520

3,603

2,827 3,0323,453

4,927

4,850

0

1,000

2,000

3,000

4,000

5,000

6,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Top 5 Germany other 5Y AVG. 2010-14 (Total): 4,927 3Y AVG. 2012-14 (Total): 4,850

MAJOR LOGISTICS REGION IN GERMANY 2014Take-up (incl. owner-occupiers) in Top 5 and other German major markets

x1,000 sq m

Source: CBRE Research

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RENTAL LEVELS

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13 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

PRIME RENTS

4.60 4.60

5.205.40

6.20 6.20

5.70 5.70

6.50 6.50

5.64 5.68

4.00

4.50

5.00

5.50

6.00

6.50

7.00

2009

2010

2011

2012

2013

2014

Q1

2014

Q1

2015

Berlin Düsseldorf Frankfurt/Rhine-Main Hamburg Munich Ø-Prime rent 2009 - 2014

Prime rents in the Top 5 markets (€/sq m/month)

Prime rents to remain stable

Source: CBRE Research

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14 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

RENT LEVELS

0.00 € 2.00 € 4.00 € 6.00 € 8.00 €

Leipzig

Kassel**

Bremen

Hanover

Berlin

Ruhrgebiet

Mannheim*

Nuremberg

Cologne

Düsseldorf

Hamburg

Rhein-Main

Stuttgart

Munich

Germany:• Slow recovery of the global economy

has affected rental price trends in Europe as a whole

• Prime rent in Top-5 went up to €5.70/sq m/month

Rental band in selected markets and the Top 5 markets (€/sq m/month)

As of March 31st 2015

*Kassel/Bad Hersfeld; **Mannheim/Rhein-NeckarSource: CBRE Research

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INVESTMENT MARKET OVERVIEW

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INVESTMENT MARKET LOGISTICS GERMANYProperty investment market turned over €9.6bn in Q1 2015 (-3% Y/Y) Logistics shares at ca. 5% of total investment volume

50% 51%44%

29% 23% 39%

7%8%

4%6% 8%

7%4% 3%4%5% 7%3%

0%

20%

40%

60%

80%

100%

2013 2014 Q1 2015

Office Retail Logistics/ Industrial Hotel Development Site Other

Total Commercial Real Estate Investment Turnover in Germany 2013 to Q1 2015

Source: CBRE Research

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17 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

INVESTMENT MARKET LOGISTICS GERMANYIndustrial investment volumes have surged in the past three years, driven by a search for yield and the high income returnsInvestment Volume Logistics 2009 to Q1 2015 (in € million)

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 2013 2014 Q1 2015

Industrial Investment Volume Share of Industrial on Total German Investment VolumeSource: CBRE Research

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18 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

INVESTMENT MARKET LOGISTICS GERMANYHight interest across all investor types

40% 20% 0% 20% 40%

Public Sector

Property Company

Others

Closed-ended Fund

Insurance Company/ Pension…

Developer

Corporates

Private Investor

Asset Manager / Fund Manager

Open-ended Fund/Special Fund

Listed Property Company/REIT

% Vendor % Purchaser2014

40% 20% 0% 20% 40%

Public Sector

Others

Property Company

Developer

Corporates

Private Investor

Closed-ended Fund

Insurance Company/ Pension…

Listed Property Company/REIT

Open-ended Fund/Special Fund

Asset Manager/Fund Manager

% Vendor % PurchaserQ1 2015

Logistics Transaction Volume by Type of Investor 2014 and Q1 2015 (in %)

Source: CBRE Research

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19 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%

2012

2013

2014

Q1 2015

Share in %

Cross-border Purchasers Local Purchasers

Sales Acquisition

INVESTMENT MARKET LOGISTICS GERMANY…especially by foreign investors

Investment Turnover Logistics by Investor’s Nationality 2012 to Q1 2015 (in %)

Source: CBRE Research

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Distribution halls most sought-after type of use

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2012 2013 2014 Q1 2015

Distribution & Logistics Production (Industrial) Warehouse

Logistic Transaction Volume by Type of Use 2012 to Q1 2015 (in € million)

INVESTMENT MARKET LOGISTICS GERMANY

Source: CBRE Research

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21 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

INVESTMENT MARKET LOGISTICS GERMANYIncreasing purchases of large-volume single assets

Portfolios Portfolios

Portfolios

Portfolios

Single-Assets

Single-Assets

Single-Assets

Single-Assets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 Q1 2015

Portfolios Single Assets

71 % 68 %

29 % 50 %32 %

50 % 80 %

20 %

Investment Turnover Logistics by Share (in %)

Source: CBRE Research

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22 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

INVESTMENT MARKET LOGISTICS GERMANYFurther decline in prime yields (NIY, Top 5)

4%

5%

6%

7%

8%

9%

Q1

2005

Q3

2005

Q1

2006

Q3

2006

Q1

2007

Q3

2007

Q1

2008

Q3

2008

Q1

2009

Q3

2009

Q1

2010

Q3

2010

Q1

2011

Q3

2011

Q1

2012

Q3

2012

Q1

2013

Q3

2013

Q1

2014

Q3

2014

Q1

2015

Shopping Center High Street Logistics Office

4.50%4.44%

5.80%

4.00%

Prime Yield 2004 to Q1 2015 (in %)

Source: CBRE Research

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23 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

Summary, Y/YINVESTMENT MARKET LOGISTICS GERMANY

Q1 2014 Q1 2015 Change y-o-y, % points

Investment volume (€ M) 1,296 430 -66.8%

Share of portfolio deals (in %) 69.6 20.4 -49.1

Share of foreign investors (in %) 79.3 56.1 -23.2

Share of type of usage (in %)

Production shed 14.2 4.8 -9.3

Distribution hall / Logistic shed 82.0 62.1 -19.9

Warehouse 3.8 33.1 +29.3

Source: CBRE Research

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24 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

Summary, Q/QINVESTMENT MARKET LOGISTICS GERMANY

Q4 2014 Q1 2015 Change y-o-y, % points

Investment volume (€ M) 953 430 -54.9 %

Share of portfolio deals (in %) 57.3 20.4 -36.8

Share of foreign investors (in %) 53.7 56.1 +2.5

Share of type of usage (in %)

Production shed 14.2 4.8 -9.4

Distribution hall / Logistic shed 48.4 62.1 +13.7

Warehouse 37.4 33.1 -4.3

Source: CBRE Research

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25 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

INVESTMENT MARKET LOGISTICS GERMANYSelected I&L investment transactions in 2014 and Q1 2015YEAR LOCATION # of

properties NAME SIZE(ca. sq m)

PRICE(ca. € million)

YIELD(ca. %) PURCHASER VENDOR

2014 diverse 10 Navis (aka Project Mouse) 397,000 303 ConfidentialSegro European Logistics Partnership (SELP)

Tristan Capital Partners

2014 diverse 4 Goodman n/a 108 ConfidentialEPF (Employees Provident Fund, Malaysia)

Goodman Property Investors

2014 diverse 8 Alpha Industrial 277,000 130 UndisclosedAlpha Industrial GmbH & Co. KG n/a

2014 diverse 7 Loren 203,640 Confidential Confidential Blackstone Group International Ltd.

Foncière des Régions

2014 Kassel 2 Industrieparks Mittelfeld & Rothenditmold 213,100 90 UndisclosedGrand City

Properties (GCP)

Deutsche Asset & Wealth Management AG

2014 diverse 3 CS Euroreal 73,750 86 UndisclosedBlackstone Group International Ltd.

Credit Suisse Real Estate Asset Management GmbH

2014 diverse 2 LogIn 111,430 Confidential Confidential Goodman Property Investors

Union Investment Real Estate GmbH

2014 diverse 3 CBRE Raiffeisen 74,360 62 7.2 CBRE Global Investors

Raiffeisen Capital Management GmbH

2014 Forchheim 1 Hines - Harder & Partner 54,600 Confidential Confidential Hines Immobilien GmbH Harder & Partner

2015 diverse 3 Fox 69,890 Confidential Confidential CBRE Global Investors

Deka Immobilien Investment GmbH

2015 Oberhausen 1 36,844 37 7.5Segro European Logistics Partnership (SELP)

n/a

Source: CBRE Research

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26 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

INVESTMENT MARKET OUTLOOK

Macroeconomic framework:

• low prices for crude oil,

• decreasing exchange rate Euro to Dollar,

• low interest rates and

• possibly record-breaking consumer sentiment

will positively affect leasing and logistics investment markets.

• It is to be expected that a very good take-up is generated on the rental market which is well above the longtime average, despite a limited offer of available spaces. This high demand for modern logistics property is especially driven by the e-commerce-sector and its associated logistics services.

• It gives reasons to expect that the macroeconomic framework and increasing demand of foreign investors cause a dynamic activity on the logistics investment market. A sufficient supply is a requirement for reaching the record-breaking achievement of 2014.

Quo vadis?

Source: CBRE Research

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27 SEGRO PLC | GERMAN I&L MARKET OVERVIEW

DISCLAIMERDisclaimer 2015 CBREInformation herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market. This information is designed exclusively for use by CBRE clients, and cannot be reproduced without prior written permission of CBRE.© Copyright 2015 CBRE

About CBRECBRE is the market leading commercial real estate adviser worldwide - an adviser strategically dedicated to providing cross-border advice to corporate and investment clients immediately and at the highest level. We have 440 offices in 60 countries across the globe, and employ 48,000 people worldwide. Our network of local expertise, combined with our international perspective, ensures that we are able to offer a consistently high standard of service across the world. For full list of CBRE offices and details of services, visit www.cbre.de.

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For more information regarding this presentation please contact:Rainer Koepke

Managing Director

Head of Industrial & Logistics Germany

+49 69 170 077 671

[email protected]

Dr. Jan Linsin

Senior Director

Head of Research Germany

+49 69 170 077 663

[email protected]

Kai F. Oulds

Managing Director

Head of Logistics Investment

+49 69 170 077 33

[email protected]