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LONDON (Alliance News) - Self-storage firm Lok'n Store Group PLC said Monday it acquired two new freehold sites in order to develop two new "landmark" stores at a cost of up to GBP15 million.
Lok'n Store acquired a "prominent" property in the Welsh capital Cardiff on the "busy" Penarth Road. The building will be refurbished and should deliver 45,000 square feet of lettable space. The refurbishment - due to start shortly - should cost around GBP5 million and result in the store opening in early 2019.
The AIM-listed firm also acquired a 2.2 acre development site in Cheshunt, Hertfordshire. Lok'n Store intends to develop a 60,000 square foot "landmark" site on this "prominent" location. Building work is expected to commence in autumn 2019 after the completion of planning matters. In total, Lok'n Store intends to invest around GBP7 million to GBP10 million on the project with it opening in late 2020.
The two new properties will be funded using existing cash flow and bank facilities. Further sites were also said to be under consideration.
For the year ended July 2017, Lok'n Store generated GBP4.0 million in pretax profit on revenue of GBP16.7 million.
"These two new landmark locations add to the recent rapid growth in our pipeline of stores," Lok'n Store Chief Executive Officer Andrew Jacobs said. "We are delivering our objective of growing rapidly by acquiring sites to develop new landmark stores from the balance sheet and to increase the number of stores we manage under the Lok'nStore brand for third parties. In executing our strategy, we are producing predictable growth in dividends for investors from an increasing number of stores underpinned by an increasing asset base and strong balance sheet".
Shares in Lok'n Store were 3.0% higher at 430.00 pence on Monday.