Business
Acquisition of Stork Self Storage Limited for £56m
Acquisition of Stork Self Storage Limited for £56m.
About this update from Safestore Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 7558R Safestore Holdings plc 25 September 2017 \n\n \n \n25 September 2017\n \nSafestore Holdings plc (\"Safestore\" or \"the Group\")\n \nAcquisition of Stork Self Storage (Holdings) Limited (trading as Alligator Self Storage) for £56m\n \nEarnings accretive from completion, further consolidation of UK market\n \nHighlights\n \n· Exchanged contracts to acquire Stork Self Storage (Holdings) Limited (\"SSSHL\"), the eleventh largest self-storage portfolio in the UK with 12 stores.\n· Consideration of £56m (subject to a potential working capital adjustment) to be funded from existing Group debt facilities\n· At the consideration price, the SSSHL portfolio has an implied first year net operating income yield of c.7.7%2\n· Expected to be earnings accretive from completion of the acquisition\n· Acquisition expands Safestore's portfolio to 146 stores, consolidating its position as the leading self-storage operator in the UK1\n \nFrederic Vecchioli, Chief Executive Officer commented:\n \n\"Over the past fifteen months, Safestore has cemented its market leading position in the UK, investing £100m in two earnings accretive acquisitions, and opening 4 new sites with a further 2 stores in the pipeline. These transactions have supplemented the organic growth being delivered by the existing business.\n \nWith the acquisition of Alligator Self Storage we have acquired a complementary portfolio of largely freehold stores across the UK which demonstrates our ability to source, fund and conclude significant acquisitions.\n \nFollowing this acquisition, Safestore will have a total of 146 stores, of which 120 are in the UK and 26 in Paris. When combined with our acquisition and development activity in Paris, we are continuing the consolidation of our leading positions in both markets.\"\n \nAcquisition of SSSHL\n \nSafestore is pleased to announce it has exchanged contracts with a company controlled by funds managed or advised by York Capital Management to acquire, Stork Self Storage (Holdings) Limited (\"SSSHL\") trading as Alligator Self Storage (the \"Acquisition\"). The consideration of £56.0m (subject ...