1st Oct 2015 06:44
LONDON (Alliance News) - Lok'nStore Group PLC Thursday said it has sold its Swindon store for GBP3.5 million in cash to an investment fund.
The self-storage company had operated two stores in Swindon, one leasehold and one freehold, but following GBP0.5 million of capital expenditure to increase capacity at the freehold store, the two stores were consolidated into one. It has now sold the store, which was valued at GBP1.4 million at July 31, 2014.
Lok'nStore will continue to manage the store as a branded Lok'nStore operation on behalf of the investor, and will receive management and performance fees. As a result of the sale, Lok'nStore's pro-forma loan-to value ratio will be reduced to 25.3%.
The proceeds of this transaction will be recycled into projects such as the new stores currently under construction in Southampton and Bristol, it said.
Following this transaction and completion of stores currently under construction, Lok'nStore will be operating 26 self-storage centres and two document stores.
"The sale of our Swindon business on a manage-back basis is another step in the expansion of our operating business while keeping a tight lid on leverage. This structure allows us to retain and grow our operating footprint without stretching our balance sheet or diluting our equity capital," Chief Executive Andrew Jacobs said in a statement.
"Our new stores in Chichester, Southampton and Bristol will open over the next twelve months and we continue to pursue further opportunities," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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