The boss of the UK's largest listed real estate logistics company, Tritax Big Box, has said that he sees decision-making finally progressing among occupiers with new lettings in lawyers’ hands.
Delivering a trading update, CEO Colin Godfrey said: ‘We are seeing an encouraging uptick in levels of activity in our development pipeline. Many occupiers that deferred decision making in 2023 have moved forward in 2024 and we have 1.5 mln ft2t of new development transactions in legals, and a strong pipeline in negotiations.'
The company has over 100 assets from small to big boxes in prime locations in the major distribution hubs close to key transport infrastructure, workforce and power, and is regarded as having the UK’s largest portfolio of logistics investment assets.
Said Godfrey: 'Through rent reviews, lettings and regears we are making good progress capturing the significant reversion within our investment portfolio. In addition, we continue to take advantage of market conditions to selectively acquire mispriced assets. These factors together with stabilised yields collectively support our positive outlook for 2024.’
Tritax also announced the completion of its takeover of UK Commercial Property REIT.
Said Godfrey, ‘The combination complements our big box weighted investment portfolio with high-quality urban logistics assets enhancing our customer offering and driving accelerated rental growth through early capture of significant rental reversion.'
Some of the unwanted parts of the portfolio look set to be jettisoned easily. 'The liquid nature of the non-strategic parts of the UKCM portfolio is reflected in the number of inbound enquiries we have received which will facilitate the accretive rotation of capital into the development of brand new best-in-class logistics assets.’
