Tritax Big Box Reit, a real estate investment trust focused on logistics and data centre properties, announced plans to raise up to £350 million through a share placement and conditional retail offer. The fundraising aims to support the company’s development of data centres and provide additional financial capacity for future logistics acquisitions.

The share placing will target City fund managers, while retail investors will have the opportunity to participate via RetailBook’s partner network, with a minimum investment set at £250. The final share price will be determined once the book-building process concludes.

Proceeds from the capital raise are intended to fund two new data centre projects in Greater London, planned for completion between 2030 and 2031. Colin Godfrey, chief executive of Tritax Big Box, highlighted the potential returns of these developments, estimating they could generate £50 million to £60 million in additional rental income, with yields on cost reaching 9 to 11 percent. He also projected aggregate capital profits of £300 million to £400 million, representing development profits exceeding 50 percent of the costs.

The company also released its half-year financial results, reporting a 16.2 percent increase in net rental income to £173.3 million for the six months ending June 30, up from £149.2 million in the same period the previous year.

Following the announcement, Tritax Big Box’s shares closed slightly lower, down 0.1 percent at 171.75 pence.