Last checked at 27 Sep 2010 07:00
27th September 2010
Lok'nStore Group plc
Acquisition of Property Option
The Board of Lok'nStore Group, the AIM listed self-storage company, is pleased to announce the acquisition of an option to acquire a site in Southend.
The site extends to 1.2 acres and fronts the busy Eastern Avenue near the town centre. When developed the site will provide up to 60,000 square feet of storage space in a prominent, modern building. The project is subject to planning permission.
Andrew Jacobs CEO of Lok'nStore said:
"We are pleased to have secured an option on this attractive site. By acquiring an option we are locking in the current low land values while monitoring the recovery of the economy in order to ascertain the appropriate moment to build out the new store pipeline.
"Lok'nStore has a strong operating business which is cash generative and backed by substantial property assets. Against this background the Board will continue to pursue further value creating asset management opportunities."
"We look forward to announcing our preliminary results for the year to July 2010 on Monday October 18th."
Enquiries
Lok'nStore Group plc - 01252 521010
Andrew Jacobs, Chief Executive
Ray Davies, Finance Director
Arbuthnot - 020 7012 2000
Nick Tulloch
Ben Wells
Financial Dynamics - 020 7831 3113
Billy Clegg
Edward Westropp
Notes to Editors
Lok'nStore runs a high quality portfolio of 22 self-storage centres across the South East of England. All stores carry the distinctive bright orange and silver livery and are located in prominent locations adjacent to main roads and town centres. Total space available is 1.2 million sq ft, of which 64% is freehold and 36% leasehold. Lok'nStore has a pipeline of 2 new sites and 2 replacement sites, all of which have planning permissions.
As at 31st January 2010, adjusted net asset value was £2.10 per share with a loan-to value ratio of 30.9% on £25m of net debt. Lok'nStore has a £40 m facility with RBS which runs until 2012.
The UK self-storage market remains undersupplied with only 0.4 sq ft per person versus around 7 sq ft per person in the more mature US market. The UK market has been growing at 10-15% per annum for the last 10 years. (Source: The Self-Storage Association).