4th Jun 2007 07:01
Lok'n Store Group PLC04 June 2007 Lok'nStore Group PLC 4th June 2007 Lok'nStore Group plc ('Lok'nStore') Acquisition of site in Southampton and disposal of Woking operation Acquisition of new site in Southampton Following the recent announcement of the new Harlow store, Lok'nStore, the fast growing AIM listed self-storage Company, is delighted to announce that it has acquired the freehold of a new site on Third Avenue, Millbrook, Southampton. The site of 2.16 acres fronts the main access road to Southampton city centreand will provide around 100,000 sq ft of self-storage space. It will replace theexisting Southampton Lok'nStore, which is located a few hundred metres away andcurrently provides up to 84,000 sq ft in a freehold property. The new build site will capitalise on the prominent main roadside position usingthe strong Lok'nStore branding similar in design to the successful newFarnborough store. The increased prominence and modern look of the building willallow the business to leverage off the existing business which is trading well,increasing both the volume of space rented and the rates achieved on thoserentals. The total investment in the new store will be up to £8 million. The acquisition is a key part of the Company's strategy to actively manage itsexisting portfolio to maximise its value, as well as increasing the number ofstores and lettable square footage. Sale of Woking Operation Lok'nStore is also pleased to announce the sale of its freehold operation inWoking for £2.4 million payable in cash in July. This is the level at which itwas valued by Cushman and Wakefield in July 2006. A private investor haspurchased the business. The Woking store, which provided 19,000 lettable sq ft, was the smallest inLok'nStore's portfolio and while trading extremely well, offered limitedopportunity to further increase the value of the business. The Woking property originally cost £444,000 and has a book value of £602,000. The proceeds of this transaction will be reinvested in Lok'nStore's ongoingprogramme of acquiring and building new larger storesAndrew Jacobs, Chief Executive of Lok'nStore Group said: "We are delighted to have made this site acquisition in Southampton to improve on our already strong trading position in the city. This follows the recent doubling in size of the Fareham store and the new freehold store in Portsmouth. These transactions demonstrate, how Lok'nStore can continue to generate extra value in our established portfolio of self-storage centres. "We are pleased with the sale of our Woking store, which underlines our core strategy of actively managing our existing portfolio to maximise the growth ofasset values for our shareholders. The proceeds will be reinvested in our new store acquisition programme. "Opportunities for larger new build Lok'nStore sites provide a model for ourfuture development with their increased prominence, attractive modern designsand higher margins." For further information: Andrew Jacobs, Chief Executive, Lok'nStore Group plc 01252 521 010Ray Davies, Finance Director, Lok'nStore Group plc 01252 521 010Jonathon Brill/Billy Clegg/Edward Westropp, Financial Dynamics 020 7269 7157Rupert Krefting, Paul Gray, Investec 020 7597 5000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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