Last checked at 1 Oct 2015 07:00
1st October 2015
Lok'nStore Group plc ("Lok'nStore" or "the Company")
Sale and manage back of Swindon store
The Board of Lok'nStore Group plc, the fast growing AIM listed self-storage company, is pleased to announce the sale of its Swindon store for £3.5 million in cash to an investment fund. Historically, Lok'nStore has operated two stores in Swindon, one leasehold and one freehold. Following the completion of £0.5m of capital expenditure to increase capacity at its freehold store the two stores were consolidated into one. This freehold store has now been sold. The two stores were valued at a total of £1.4 million at 31 July 2014.
Lok'nStore will continue to manage the store as a branded Lok'nStore operation on behalf of the investor, and will receive management and performance fees. As a result of the sale Lok'nStore's pro forma* loan-to value (LTV) ratio will be reduced by 2.9% to 25.3% (2014: 28.2%).
The proceeds of this transaction will be recycled into projects such as the new stores currently under construction in Southampton and Bristol.
Following this transaction and completion of stores currently under construction Lok'nStore will be operating 26 self-storage centres and 2 document stores.
Andrew Jacobs, CEO of Lok'nStore Group said:
"The sale of our Swindon business on a manage-back basis is another step in the expansion of our operating business while keeping a tight lid on leverage. This structure allows us to retain and grow our operating footprint without stretching our balance sheet or diluting our equity capital.
"Our new stores in Chichester, Southampton and Bristol will open over the next twelve months and we continue to pursue further opportunities."
Lok'nStore group will announce results for the financial year to July 2015 on October 19.
*Pro forma LTV using July 31 2014 valuations
-Ends-
Enquiries:
Lok'nStore Andrew Jacobs, CEO Ray Davies, Finance Director
| 01252 521 010 |
finnCap Ltd Julian Blunt, Corporate Finance Alice Lane, Corporate Broking
| 020 7220 0500 |
Camarco Bill Clegg / Tom Huddart
| 0203 757 4980 |
Notes for Editors
Lok'nStore is one of the leading companies in the fast growing UK self-storage market, currently operating 24 highly visible, distinctive orange livery self-storage centres in prominent locations in South-East England and two serviced document storage sites. Lok'nStore has started a programme of opening five new stores in Maidenhead, Reading, Aldershot , Southampton and Bristol.
In its recent pre-close trading update, for the financial year to July 31 2015 Lok'nStore announced revenue in the core self-storage business up 12%. On 31 July Self-storage occupancy increased to 0.6% and price per let square foot increased 4.1% over July 2014.
In August, Lok'nStore announced that it had received a further £2 million payment for the sale of its old Reading store for which it had already received £2.9m in November 2014. These funds will be recycled into the new store development programme.