A major new logistics deal has been confirmed by modern warehousing specialist SEGRO.

The company, which also provides light industrial and data centre properties, announced that it has reached agreement over a transaction with Public Sector Pension Investment Board.

As a result of the deal, the two companies will now form SEGRO European Logistics Partnership (SELP), which will be a €1 billion (£848 million) logistics joint venture in Continental Europe.

Confirmation of the massive new logistics joint venture comes after it was announced by SEGRO in June that it was in talks with Public Sector Pension Investment Board over a deal.

Chief executive at SEGRO David Sleath stated that the formation of SELP will be an important step for the company as it seeks to strengthen its position as one of the leading providers of logistics space in Continental Europe.

He said: “We are excited about the prospects for the venture and the opportunity it provides to leverage and grow our platform in this attractive and growing sector. We look forward to working closely with PSP Investments to deliver our combined vision for the business.”

SEGRO already has £4.7 billion of assets and it is likely that the SELP deal with Public Sector Pension Investment Board will allow it to become one of the continent’s most dominant companies in the logistics sector.

The firm already boasts key conurbations in France, Germany and Poland, as well as in London’s Western Corridor, while it owns specialised buildings in the Thames Valley, Brussels and Milan, as well as smaller industrial property investments in Belgium, The Netherlands and the Czech Republic.

SEGRO’s new deal comes only a short time after the importance of logistics was highlighted by the Freight Transport Association (FTA), which called for Transport for London to remember how vital this sector is to the capital city’s economy.

Director of policy and communications at the FTA James Hookham explained there are going to be major changes in the way deliveries are made in the capital in the next few years as a result of amendments being unveiled by the city’s mayor Boris Johnson.