Lok’nStore has agreed on the sale and manage-back of four of its freehold sites in a deal worth £39m.
Self-Storage Trading LLP – an institutional managed-store client – is behind the acquisition, which concerns stores in Basingstoke, Cardiff, Horsham, and Portsmouth.
These will remain branded Lok’nStore operations maintaining the operational footprint of the business.
The net proceeds of the sale will be “recycled quickly” into new stores. Lok’nStore already has three further sites with lawyers and a number of other opportunities progressing.
Executive chairman Andrew Jacobs said: “This transaction, at a 22.8 percent premium to the July 2021 independent valuation, demonstrates the value Lok’nStore is creating and the growing institutional demand for UK self-storage assets. “The £37.2m of net cash generated from this transaction will support the further expansion of our new Landmark store pipeline. Our strategy remains unchanged, to recycle capital to deliver a faster-growing return, which allows us to increase the rate of dividend growth for shareholders.”
