Big Yellow Site Acquisitions
19th February 2019
Big Yellow today announces the acquisition of freehold sites in Wembley, North London and Kingston North in South West London.
This brings to 12 the total pipeline of proposed new stores (including the replacement of our Battersea store) which would on completion result in additional capacity of approximately 760,000 sq ft, 16% of the Group's portfolio's current Maximum Lettable Area. This excludes our Wapping store (current lettable area of 25,000 sq ft) which opened for trade in July 2018 and has the potential for future expansion.
Current lettable income from both the properties acquired will mitigate the earnings dilution while the sites are prepared for development.
The Group's pipeline, which has taken nearly five years to build, should allow new stores to be opened on a reasonably regular and sustainable basis.
Construction is well advanced at Manchester, is underway at Camberwell and will start in the next few months at Battersea, following the transfer of customers from the existing store.
We are in receipt of planning at Bracknell and applications are submitted on three additional sites.
James Gibson, Chief Executive Officer commented:
"Our pipeline of proposed new stores will over the medium term make a considerable contribution to the Group's earnings and importantly continues to consolidate our leading position in London. We continue to look for opportunities to acquire more development land."