Tritax Big Box REIT (LSE:BBOX) has received planning consent for its 107MW Manor Farm data centre in the Slough Availability Zone, marking a major milestone for one of its flagship digital infrastructure projects. The approval follows the successful conclusion of a judicial review, significantly increasing the development potential of the site and providing a clear path towards construction in one of Europe’s most sought-after and capacity-constrained data centre markets.
The company has also secured an accelerated route to power delivery, overcoming one of the biggest constraints facing new data centre developments and allowing capacity to be brought to market ahead of competing projects. Backed by strong occupier demand, with a pre-let agreement now progressing through legal documentation, the Manor Farm scheme is expected to generate a yield on cost of 9.3%. The project represents an important step in Tritax Big Box’s strategy to expand its data centre portfolio and support medium-term earnings growth while delivering attractive long-term returns for shareholders.
The company’s investment outlook remains supported by solid underlying financial performance, although weaker free cash flow conversion during 2025 and higher debt levels continue to weigh on the overall picture. Technical indicators remain favourable, reflecting a sustained upward share price trend, while valuation appears attractive with a low-teens price-to-earnings ratio and a dividend yield of around 4.6%. Recent management commentary has also strengthened confidence through a visible development pipeline and disciplined capital allocation, although execution risk and the normalisation of near-term income remain factors to watch.
More about Tritax Big Box REIT
Tritax Big Box REIT plc is the UK’s largest listed owner and developer of high-quality logistics warehouse assets, with a portfolio focused on modern distribution facilities let on long-term leases. As a FTSE 100 real estate investment trust, the company seeks to generate sustainable income and capital growth through strategically located logistics properties serving leading occupiers.
Alongside its logistics platform, Tritax Big Box is expanding into digital infrastructure through a power-led data centre strategy. The company has built a development pipeline exceeding 230MW of secured capacity, with ambitions to grow this to around 1 gigawatt, positioning it to benefit from rising demand for data centres driven by cloud computing, artificial intelligence and digital services.
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