Tritax Big Box REIT (LSE:BBOX) has been informed that the UK Secretary of State is expected to issue a planning decision on its proposed Manor Farm data centre project near Heathrow by 7 July. The development has been classified as critical national infrastructure, highlighting its significance to the UK’s digital economy and reinforcing the strategic importance of Tritax’s expansion into the data centre sector.
The company said its assessment of the likelihood of receiving planning approval remains unchanged and that shareholders will be updated as the process progresses. Investors are expected to closely monitor the outcome, given the potential role of the Manor Farm scheme in advancing the group’s growing digital infrastructure ambitions.
The proposed project forms part of Tritax’s broader strategy to diversify beyond its traditional logistics property portfolio and increase exposure to higher-growth data centre assets. A successful planning outcome could provide further momentum for the company’s expanding pipeline and strengthen its position in a sector benefiting from rising demand for computing power and data storage capacity.
From a financial perspective, Tritax continues to benefit from solid underlying performance, although weaker free cash flow conversion during 2025 and higher debt levels remain considerations for investors. Technical indicators remain supportive, reflecting a positive share price trend, while valuation metrics, including a low-teens earnings multiple and a dividend yield of around 4.6%, continue to offer appeal. Management has also reinforced confidence through its focus on capital discipline and the visibility of its development pipeline, although execution risks and near-term income normalisation remain factors to watch.
More about Tritax Big Box REIT
Tritax Big Box REIT plc is the UK’s largest listed owner and investor in large-scale logistics warehouse assets and controls the country’s largest logistics-focused land platform. The FTSE 100 real estate investment trust seeks to generate sustainable long-term returns through the ownership, development and active management of modern logistics facilities leased to major occupiers across the UK.
As part of its “power first” strategy, the company has expanded into data centre development, securing initial projects representing more than 250MW of capacity and building a pipeline of approximately 1GW of additional opportunities. The move complements its established logistics portfolio and provides exposure to the rapidly growing digital infrastructure market.
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