Business
Safestore and Carlyle form Joint Venture
Safestore and Carlyle form Joint Venture.
About this update from Safestore Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 4090J Safestore Holdings plc 19 August 2019 \n\n \n19 August 2019\n \nSafestore Holdings plc (\"Safestore\" or \"the Group\")\n \nSafestore and Carlyle form Joint Venture to enter Dutch Self Storage Market/ Separate acquisition of London Store\n \nJoint Venture Highlights\n \n· Safestore and Carlyle European Real Estate Fund (\"Carlyle\") form Joint Venture (\"JV\") to acquire M3 Self Storage (\"M3\"), an operator of six prime storage locations in Amsterdam and Haarlem in the Netherlands.\n· Safestore to invest in a 20% equity stake on completion for a consideration of c. €5m and to provide management services to the joint venture. Completion is anticipated to take place by the end of August 2019.\n· Safestore expects to earn an initial return on investment1 of 8% before transaction related costs for the first full year reflecting its share of expected JV profits and fees for management services.\n· The transaction is expected to be earnings accretive from completion.\n· The JV intends to invest in further development and acquisition opportunities.\n \nLondon store acquisition\n \n· Separately, the Group has completed the acquisition of a 34,000 sq ft freehold store located near Heathrow Airport for £6.5m. The transaction is expected to be immediately earnings accretive.\n \n \nFrederic Vecchioli, Chief Executive Officer commented:\n \n\"Since 2016, Safestore has successfully invested or committed c. £180m in 38 stores, acquisitions and new developments in its core markets of the UK and Paris which are deliver...