Surrey's Big Yellow Group gets planning consent for 58,000 sq ft centre in Epsom

Big Yellow Group, headquartered in Bagshot, Surrey, reported on Tuesday that it had received planning permission, at appeal, for a 58,000 sq ft storage centre on its site in Epsom, London.

The company operates self-storage sites across the UK and said that this Epsom store would deliver an around 8.5% net operating income return at stabilisation on the total capital deployed of £20 million.

READ MORE: Big Yellow self-storage development gets underway in Slough

In a stock market statement, CEO Jim Gibson said that conditions in the construction market had improved "significantly" and that the firm was motivated to build out these stores, which "will generate high cash returns on the incremental construction spend", which in this case was 13%.

"We have planning or resolutions to grant on eight pipeline stores, with a further three of the remaining five sites in the planning system," he added.

"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."

In May this year, Big yellow reported encouraging growth in 2023 despite the "challenging macroeconomic and geopolitical environment".

It saw 10% growth in revenue, from £171.3 million in March, 2022 to £188.8 million in March, 2023. Adjusted profit before tax also increased by 10%, from 2022’s figure of £96.8 million to £106 million this year.

These positive numbers were, according to the company, reflective of new stores and an additional three months of Armadillo Self Storage (an acquisition made in July, 2021).

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