(Alliance News) - Lok'n Store Group PLC on Monday announced a new site acquisition with funds from its recent placing, and said it has grown its store pipeline in recent weeks as well as increasing revenue.
The London-headquartered self storage provider said it has exchanged unconditional contracts on a 60,000 square foot freehold site in Eastbourne, Sussex. Lok'n Store used equity capital from its share placing earlier this month, which exceeded its GBP18 million target to raise GBP20.5 million, to fund the purchase.
Lok'n Store will pay a GBP5.5 million initial land cost, and net costs for the project are expected to reach around 12.0 million. Completion of the acquisition is due for the end of this year, once the current occupier has moved out.
The company also said that building work at three store developments in Basildon, Staines and Kettering is still ongoing, but that the sites will open within the next 12 months.
The Eastbourne purchase brings Lok'n Store's total secured pipeline to 52 stores in total including 11 new stores, which the company expects to add "considerable momentum to our sales and earnings growth," although it warned that the planning system remains "lengthy and unpredictable."
Lok'n Store also reaffirmed its belief from last month that its revenue has remained "buoyant"; it anticipates stores revenue to increase in the second half year by around 11% from levels in the same period last year.
"Operating costs are in line with the expectations set out in our interim results announced in April," the company added. It will release a pre-close trading update on August 14.
Shares in Lok'n Store were down 1.0% at 780.00 pence in London on Monday afternoon.
By Emma Curzon, Alliance News reporter
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Lok N Store (LOK)
