Self-storage warehouse operator Big Yellow said it had obtained planning consent at appeal for a 58,000 sq ft storage centre on its site in Epsom, London.
The company on Tuesday said it expected the new store to deliver an 8.5% net operating income return at stabilisation on the total capital deployed of £20m.
“As we have previously identified, conditions in the construction market have ameliorated significantly and we are therefore motivated to build out these stores which will generate high cash returns on the incremental construction spend; in this case 13%,” said chief executive Jim Gibson.
“We have planning or resolutions to grant on eight pipeline stores, with a further three of the remaining five sites in the planning system. We are currently on-site at Slough Farnham Road and have committed to build out Wapping. We will decide the timing of building out the other stores early in the New Year.”
