Segro, the former Slough Estates, has traditionally monitoredthe balance between UK and mainland European assets to benefit fromdifferent real estate and economic cycles. The Brixton acquisitionhas boosted its portfolio but also tilted it heavily toward theUK.

"On Dec. 31, 2008 our portfolio was by space almost exactly50-50 Europe and UK," Coull says. "As a result of the Brixtonacquisition it is now 72-28 in favor of the UK. But I never set outa target breakdown between the two. We got to 50-50 because we wereinvesting more in Europe in the two years leading up to the end of'08 than we were in the UK, simply investing where we thought wewere going to get the best returns. So looking forward I'm notsaying we're going to get back to 50-50 this year, next year or theyear after. We may well do, but it will be because we have investedour capital in the right place."

With an asset portfolio of $8.1 billion, Segro provides flexiblebusiness space across Europe - offices, light industrial,logistics, warehouses and datacentre properties. For 2009, itreported net rental income up 10% at $413 million and adjustedpre-tax profit up 16.8% at $160 million, reflecting inclusion ofBrixton results for the last four months. "Brixton was a fantasticopportunity for us and was one that at the beginning of 2009 wecouldn't have anticipated," Coull says. "It had always been fullyvalued and had a high market cap relative to the size of its assetsbut it got into so much financial distress leading up to and thenin the first few months of last year."