(Alliance News) - Big Yellow Group PLC on Wednesday said it has bought a "prime" site in Slough from industrial property investor Segro PLC, where it plans to develop a GBP19 million store on.
The site falls within the Slough Trading Estate simplified planning zone scheme. This scheme sets out a series of conditions and provided that a development complies with these conditions, then developers do not need to secure full planning permission.
The Surrey-based self-storage facilities operator said it plans to develop a 62,000 square foot store on the site. The total development cost of the new store is around GBP19 million, and it is expected to open in summer 2024.
As part of the contract, Big Yellow has agreed to surrender the lease of its existing Slough store, which is leased by Segro. The lease surrender will take effect six months after the completion of the new store.
Chief Executive Jim Gibson said: "This is a high quality addition to the group's pipeline. The acquisition allows us to extinguish a rental liability and provides the group with a more prominent location to operate from in Slough."
Shares in Big Yellow were down 2.3% to 1,319.00 pence each in London on Wednesday morning.
By Sophie Rose; sophierose@alliancenews.com
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Segro (SGRO)
Big Yellow (BYG)