From streaming and online shopping to artificial intelligence (AI), the UK economy is becoming ever more data‑hungry and digitally connected. And behind the apps and algorithms sits a physical layer of real assets such as modern warehouses, data centres, self‑storage facilities, telecoms towers and fibre networks, that make this shift possible.

In the first of a mini series of four case studies looking at the mega trends driving the ‘next generation’ of real estate, we look at digitalisation.

The digitalisation mega trend is multi‑faceted. It encompasses headline topics like AI and the rapid growth of data usage, but also more everyday developments such as the rise of e‑commerce and cloud‑based business services. As a result, it touches a wide range of listed property sectors, including logistics, data centres and self-storage. It’s currently the most prominent theme in the TM Gravis UK Listed Property Fund, reflecting the scale and breadth of the changes it is driving across the built environment.

We currently have more exposure to digitalisation than the other mega trends (aging population, generation rent and urbanisation), reflecting our strong conviction in the essential real assets that underpin the technologies changing the way we work, play and live. Our two largest positions are Segro Plc and Tritax Big Box Plc.

Segro is the largest UK-listed real estate investment trust (REIT), with a market cap of approximately £10 billion. It is a leading owner, asset manager and developer of modern industrial properties and data centres. In fact, Segro’s data centre portfolio on the Slough Trading Estate is the largest cluster of data centres in Europe, and one of the largest in the world.

Tritax Big Box is also a UK-listed REIT, and owns a best-in-class portfolio of logistics warehouses located around the UK. Since raising £200 million of gross proceeds at initial public offering (IPO) back in 2013, Tritax has grown considerably, evidenced by its recent inclusion in the FTSE 100 for the first time. Like Segro, Tritax has diversified into data centres, and is currently seeking planning permission to develop its first data centre, a 147 megawatt (MW) project near Heathrow (see rendering below).

Although Segro and Tritax Big Box are our largest investments in the digitalisation mega trend, they are far from our only investments in this space. We also have exposure to several diversified REITs with sizeable logistics portfolios like LondonMetric, self storage REITs like Big Yellow and Safestore, and companies like Cordiant Digital Infrastructure that offer access to sub sectors including telecommunications towers and fibre-optic networks.

The outlook is unambiguously positive for companies associated with the digitalisation mega trend, driven by top down tailwinds such as advancements in AI and complimented by their robust operating results.

For example, Segro and Tritax reported healthy organic rental growth in 2025, which translated into dividend per share growth in excess of inflation*. Perhaps more importantly, both companies have laid out ambitious plans for the future; Segro has upped its capital expenditure guidance for 2026 in response to increased enquiries from a range of industrial and data centre occupiers, and Tritax has set a target of growing earnings by 50% by 2030.

For more evidence that springtime might be around the corner for the sector, consider that Sirius Real Estate recently raised approximately £75 million in order to fund earnings-accretive acquisitions, and after a busy year of M&A activity in 2025, LondonMetric remains on the hunt for high-quality property portfolios aligned to mega trends like digitalisation. Finally, there are rumours swirling that as capital markets begin to thaw after a challenging few years, private markets giants like Blackstone might consider IPOs as an exit route for long-held portfolio companies.

*UK inflation was 3.4% for the 12 months to 31/12/25, compared to dividend per share growth of 6.1% for Segro and 4.4% for Tritax.

Important information

This article is issued by Gravis Advisory Limited (“GAL” or the “Firm”)), which is authorised and regulated by the Financial Conduct Authority. GAL’s registered office address is 24 Savile Row, London, United Kingdom, W1S 2ES. The company is registered in England and Wales under registration number 09910124.

TM Gravis UK Listed Property (PAIF) Fund (the “Fund”) is a sub-fund of TM Gravis Real Assets ICVC, which is a non-UCITS retail scheme and an umbrella company for the purposes of the OEIC Regulations. The Fund is a Property Authorised Investment Fund (“PAIF”).

The Authorised Fund Manager of TM Gravis Real Assets ICVC is Thesis Unit Trust Management Limited (TUTMAN), Exchange Building, St John’s Street, Chichester, West Sussex, PO19 1UP. TUTMAN is authorised and regulated by the Financial Conduct Authority. GAL is the investment manager of the Fund.

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GAL does not offer investment advice and this article should not be considered a recommendation, invitation or inducement to invest in the Fund. Prospective investors are recommended to seek professional advice before making a decision to invest.

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