Big Yellow buys new London site GBP10.8 million, eyes development

(Alliance News) - Big Yellow Group PLC on Monday said it has bought a freehold property for GBP10.8 million, with plans to develop a new East London storage facility.

The Bagshot, Surrey-based self-storage site operator said the asset is a 0.5-acre site in Bethnal Green, where the current supply of storage warehouses is low, according to Big Yellow.

The acquisition is expected to close in 18 months, and completion is unconditional, the firm said. During the purchase period, Big Yellow will apply for planning permission to build a 68,000 square-foot storage facility. The firm is targeting an 8% net operating income yield on capital deployed at stabilisation.

Chief Executive Jim Gibson noted: "This is a high-quality zone 2 London addition to the group's pipeline; opportunities to acquire sites in this location are rare, and there is very little existing self-storage supply in the local area."

Big Yellow's other East London sites include Wapping and Bow, both within a 2-mile radius of central Bethnal Green.

For the first quarter that ended June 30, the company reported a 2.6% rise in revenue, which increased to GBP51.5 million from GBP50.2 million on-year. In a July trading statement, Big Yellow noted four new store openings planned for financial 2026, followed by four more in 2027 and another London location in 2028.

The company's shares were up 0.6% at 918.00 pence on Monday morning in London.

By Holly Munks, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.

Big Yellow