Last checked at 30 Jul 2012 07:00
30th July 2012
Lok'nStore Group plc
("Lok'nStore" or "the Company")
Acquisition of Freehold
Lok'nStore Group plc is pleased to announce that it has acquired the freehold of its existing Swindon East store for a consideration of £925,000. This will be financed by drawing down on the Company's existing revolving credit facility.
The store has been trading since 2001 in leasehold premises with a current annual rent of £108,050, meaning there will be a corresponding £108,050 positive impact to the Company's EBITDA for the coming year. After this transaction 61% of Lok'nStore's self-storage-space will be freehold and 39% leasehold.
Andrew Jacobs, Chief Executive of Lok'nStore, said, "This acquisition is in line with our stated strategy of actively managing our portfolio and taking advantage of opportunities as they arise to acquire the freeholds of our stores."
"The implied yield of 11.7% is very attractive and with a current average cost of debt of just over 3% it will be immediately cash flow enhancing, increasing the financial strength of the Company while decreasing the operational gearing. Following this acquisition and the opening of 3 new stores over the coming year, Lok'nStore's self-storage business will be operating from 13 freehold sites, 9 leasehold sites and 3 managed stores."
Ends
For further information: Lok'nStore | Tel: 01252 521010 |
Andrew Jacobs, CEO | |
Ray Davies, Finance Director
| |
FTI Consulting | Tel: 020 7831 3113 |
Billy Clegg/ Oliver Winters/ Latika Shah
| |
Panmure Gordon & Co | Tel: 020 7459 3600 |
Corporate Finance: Dominic Morley/Fred Walsh Corporate Broking: Charles Leigh-Pemberton | |
Notes to editors:
Lok'n Store is a leading self-storage company in the fast growing UK market. It offers flexible, low cost, accessible storage with a high quality portfolio of 22 self-storage centers and four document storage sites across South East England.
Lok'nStore recently announced a new joint venture store in Aldershot and a new managed store contract in Crawley. A joint venture with Lidl in Maidenhead will also open in 2013.
Lok'nStore's ability toopen new stores with a reduced capital outlay, combined with the headroom on its new banking facility signed in October 2011 give it a strong competitive advantage at a time when many competitors are constrained by their financial condition. Lok'nStore recently fixed the interest rate on 70% of its debt at 3.525%.