Safestore Holdings PLC on Friday said it entered the German self-storage market through a new joint venture with investment firm Carlyle Group Inc.
Safestore is a Hertfordshire, England-based self-storage provider.
The FTSE-250 company said the joint venture has acquired the seven-store myStorage business as well as a freehold site in Rotterdam.
Safestore’s initial investment in the joint venture is around EUR2.2 million for a 10% share. It will earn a fee for providing management services to the joint venture.
Safestore added that it expects to earn an initial return on investment of 15% for the first full year, before transaction-related costs, reflecting its share of expected joint venture profits and fees for management services.
Furthermore, Safestore said the freehold site in Rotterdam will bring its total group property pipeline to 1.5 million square feet and represents 19% of its existing portfolio.
Chief Executive Officer Frederic Vecchioli said: “Following our previous successful JV with Carlyle in the Benelux region, we have established a new German JV which has acquired the seven-store myStorage business. Germany is one of Europe’s most under-penetrated self-storage markets and I look forward to growing our presence there.”
Previously, Safestore entered the Benelux market in 2019 through a joint venture with Carlyle.
In March 2022, Safestore acquired all of the joint venture in the Benelux region that it formed with Carlyle Europe Realty, a real estate opportunistic fund managed by Carlyle. Safestore had owned 20% of the joint venture, with Carlyle Europe Realty owning the rest.
Safestore shares were up 0.6% to 931.00 pence on Friday morning in London.
