17th Oct 2013 08:36
LONDON (Alliance News) - AIM-listed self storage company Lok'n Store Group PLC Thursday said it has sold its Reading site for an initial GBP2.9 million in cash, a 7.4% premium to its end-July valuation of GBP2.7 million, and will use the money to build a bigger store next door.
The company, which will vacate the property next year, said it may receive extra payments depending on the value of sales when the site is made into a residential development.
Lok'n Store isn't exiting the Berkshire town. It owns an adjacent site and will build a new 48,000 square foot store, a 20% increase on the current store, on the land.
"Revenue and occupancy growth from our existing stores, combined with the opening of the new Crawley, Maidenhead and Aldershot stores over the next 12 months will take us to 25 trading stores. We are confident that this, along with our strong balance sheet will underpin the continued growth of the business," Chief Executive Andrew Jacobs said in a statement.
Lok'n Store shares were up 1.8% at 195 pence Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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