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Big Yellow Group (LSE:BYG), a leading self-storage operator, announced on Monday that it has made substantial progress on two major projects in London, securing planning consent for a combined 307,000 square feet of storage space at two prime locations.
The company received approval for a 176,000-square-foot development adjacent to the Kensington Olympia events center, which is currently undergoing a major redevelopment valued at £1.3 billion. This new storage facility will be situated near the largest theatre being built in London since the 1970s, with the project slated for completion in 2027.
Additionally, Big Yellow has obtained planning consent for a 131,000-square-foot replacement facility at Staples Corner. This new site will replace an existing leasehold store, set to close once the new facility is completed in 2026. The relocation is expected to eliminate the current annual rent liability of £0.8 million.
Chief Executive Officer Jim Gibson emphasized the importance of the Kensington Olympia development, calling it the largest and most significant planning consent secured by the company. He noted that this development reflects Big Yellow's strategy to expand in central London’s affluent and densely populated areas, where land is limited and obtaining planning permissions is particularly challenging.
The new Staples Corner location will benefit from its position at a highly visible and accessible intersection of major arterial roads, enhancing its appeal to customers.
Gibson also highlighted that the Staples Corner relocation aligns with the company's broader goal of reducing its annual rent liability to around £1 million. With planning permissions now secured for nearly all of its London sites, Big Yellow has effectively mitigated risks associated with its new store pipeline and is well-positioned for significant revenue growth.
Following the announcement, shares in Big Yellow Group fell slightly by 0.48%, trading at 1,256p as of 0819 BST. The market response reflects investor reactions to the latest planning approvals and the company’s future growth prospects.
