CC, Lovells lay groundwork as Segro sets sights on rival

Clifford Chance and Lovells are involved in the preliminary stages of real estate investment trust (Reit) Segro’s proposed takeover of rival Brixton – a move that would create the largest industrial property company in the UK.

Brixton, which is one of the few property companies not to have made a cash call so far, has turned for corporate advice to its long-term counsel Clifford Chance.

Partner Adrian Levy, who is a member of the firm’s UK Reits group and has advised Brixton in the past, is ­understood to be working with partner Jonny Myers.

Lovells corporate partner Nigel Read is leading a team advising Segro on all aspects of any potential takeover of Brixton. He is working with corporate partner Nicola Evans, head of real estate Bob Kidby and real estate partner John Condliffe.

Segro carried out a £500m rights issue in March this year on which Read and Evans worked. Segro is considering wheth­er to do a rights issue to raise a further £300m to fund the takeover, although the ­company has not publicly commented on the matter.

Segro was one of a string of high-profile clients that former Lovells corporate partner Hugh Nineham brought to the firm before moving to McDermott Will & Emery to become European and London ­corporate head last year (TheLawyer. com, 14 January 2008).

Clifford Chance and Lovells declined to comment on the discussions between the two companies.