In an investor update ahead of its AGM today, Tritax Big Box REIT has said that it has made good progress with its data centre development near Heathrow – with non-disclosure agreements (NDAs) signed with several potential pre-let occupiers including hyperscalers and co-locators.
Planning consent for the 107 MW data centre development at Manor Farm, west London, is expected by the end of 2025.
The company said that is was progressing with an additional 1GW data centre pipeline that sits within the broader London availability zone.
The trading update also revealed that the company had witnessed an uptick in occupational interest from potential occupiers for its logistics developments, which it said it expected to convert to increased leasing activity in the second half of 2025.
It has 1.3m sq ft of potential development lettings in solicitor’s hands, which have an annual rental income of £11.9m.
The company added that a higher proportion of leases were subject to review in the second half of 2025, which it expects will result in an acceleration in rent income capture as the year progresses.
So far this year, the company has added £2.3m to annual rental income from portfolio lease events, which represents an 8.3% absolute increase in rent across these lease events, with open market reviews delivering uplifts averaging 37.3%.
A further 18.6% of contracted rent is set to be reviewed across the remainder of 2025.
The company has sold half of the non-strategic UKCM assets at an average 2.9% premium to December 2023 book value, and has a further £95.6m under offer.
The company will host a seminar for investors on Monday 30 June 2025 to share further details of the logistics development and data centre growth drivers. The seminar, which will be held both in person in London and available via webcast, will provide investors with an opportunity to hear from and meet members of the broader Tritax team. Further details on how to register will be made available shortly.
Colin Godfrey, CEO for Tritax Big Box, commented: “We remain well positioned to offer investors superior risk-adjusted returns driven by our focused UK logistics and data centres strategy. Our integrated approach across active management, investment and development provides extensive organic growth opportunities, which have the potential to more than double rental income. This, combined with our efficient cost structure and limited near-term debt maturities, underpins our ability to continue to grow earnings and dividends.
“Despite a period of challenging investment market conditions, we have successfully sold £634 million of assets at or above their book valuations since the September 2022 mini-budget. This demonstrates the quality of our portfolio and provides confidence in both our asset values and our ability to continue to finance our strategy through capital rotation.
“We are pleased with the levels of interest from both hyperscalers and co-locators in our first data centre opportunity at Manor Farm, West London. With an acute shortage of power in this key availability zone, our ability to provide 107 MW of power delivery in 2027 is unique. The planning process is progressing as expected, with an aim of achieving consent by the end of 2025.
“We expect our investment portfolio, which our clients primarily use to serve the UK domestic market, to remain unaffected by US tariff changes.”
