SEGRO expects to spend £700m on developments this year as it continues to buy more land for future growth.
In a Q1 update this morning, the REIT said its development programme had “grown significantly” since the year end, with 15m sq ft under construction or in advanced discussions.
The current or near-term pipeline is expected to earn £108m in annual rent.
SEGRO completed 1.3m sq ft over the quarter, up from 150,000 sq ft for the same period in 2021.
The REIT spent £175m during the quarter on land and assets.
Chief executive David Sleath said: “Capital investment continues to focus on development and acquisition of assets with opportunities for future growth, as well as sourcing land and assets with short-term income and redevelopment potential to extend our development pipeline.
“Our business has had a strong start to the year with continued demand from a broad range of customers, enabling us to capture further rental growth through rent reviews and the reletting of space. We have significantly increased our largely prelet development pipeline and have secured future opportunities for growth in some of our most supply-constrained urban markets through the acquisition of land, as well as income-producing assets with medium-term redevelopment potential.”
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