UK asset management company Segro has signed a deal with Roxhill Development Group to develop logistics assets in the South East and Midlands region.

The partnership between the two companies will allow them to invest about £800 million over 10 years to develop 10 million square feet of big box logistics portfolio in the area of the UK.

Roxhill Management Rugby will serve as the development manager for the new partnership, and it will work exclusively with Segro after it completes the existing development projects with other existing partners.

David Sleath, Segro CEO, said: “This partnership establishes a clear path for us to achieve the scale we desire in the attractive UK big box logistics market.

“We are convinced that this market has very favourable long term prospects given the lack of quality supply and increasing demand from retailers and logistics operators for modern space in the right locations.”

The sites subject to the deal are at various stages of the planning process, according to Segro. The terms of the transaction allow the company to phase its investment.

The initial amount being invested will be paid in consideration for a 50% share of Roxhill’s interests in options over the sites, said Segro.

As per terms of the deal, Segro will fund planning fees and development management costsfor the projects.

After a period of 30 months from completion, Segro can purchase all of Roxhill’s remaining option interests and management platform RMRL.

This is not the first such partnership between the two companies. In 2013, Segro first established joint venture with Roxhill to develop logistics site at Rugby Gateway.

The asset management company currently manages nearly 6 million square metres of logistics space at major transportation hubs across nine European countries, including the UK, France, Poland and Germany.