Storage King, which operates 29 self-storage properties in the United Kingdom, has secured £50 million in funding from British banks HSBC UK and Santander UK to help fuel future growth. The company intends to expand several existing sites as well as add two to four new facilities annually over the next five years, according to a press release.
The Storage King portfolio has performed well over the last 18 months, growing in physical occupancy from 75% to 90%, the release stated. The company attributed the progress to increased demand stemming from residential moves and other factors related to the pandemic.
“We have ambitious plans to continue growing our U.K. portfolio both through new developments and the acquisition of trading properties, and this new facility will play an important role in supporting that growth,” said Gavin Lucas, CEO of Storage King parent company Stor-Age Property REIT.
Funding was split evenly between the two banks. The “club” package comprises a three-year term loan and revolving credit facility, which will allow Storage King to refinance and restructure its debt, according to the release.
The Storage King portfolio includes owned facilities as well as properties under licensing and management agreements. The company was acquired in 2017 by Stor-Age, which operates the Stor-Age Self Storage brand in South Africa.