Lok'nStore Group PLC Sale and manage back of Crayford store (4729R)
01 March 2019 - 12:54AM
UK Regulatory
TIDMLOK
RNS Number : 4729R
Lok'nStore Group PLC
28 February 2019
28 February 2019
Lok'nStore Group plc ("Lok'nStore" or the "Company")
"Lok'nStore announces sale and manage back of its Crayford
store"
Lok'nStore, the fast-growing self-storage company, is pleased to
announce the sale and manage back of its store in Crayford for
GBP7.52 million in cash to an investment fund.
The store has been sold on a sale and manage back basis as part
of the Company's strategic objective to recycle capital from older,
lower growth assets to new, high growth landmark stores.
Lok'nStore will continue to manage the store as a branded
Lok'nStore operation maintaining the operational footprint of the
business, and will receive management and performance fees for
managing the store on behalf of its new owners.
The transaction generates GBP7.52 million in cash for
reinvestment in new stores and supports Lok'nStore's stated aim to
increase the number of stores it manages for third parties.
The transaction price represents the independent external
valuation of the store and also the store's net book value (fair
value) as at July 31 2018 so there is no impact on net asset value.
The historic cost of the store as at July 31 2018 is GBP4.24
million.
Following the disposal of Saracen Datastore Limited announced on
1 February 2019, the aggregate financial effect is to improve the
Company's Loan to Value Ratio and the Senior Interest Covenant
Ratio also improves. Based on a current effective interest rate of
2.13% pro forma EBITDA to adjusted interest increases from 10.35
times covered to 12.29 times based on the most recent quarterly
testing covenant for October 2018.
Following this transaction and completion of stores currently in
planning/development Lok'nStore will be operating 41 stores of
which 13 will be managed stores on behalf of third party
owners.
Andrew Jacobs, CEO of Lok'nStore said:
"We are extremely pleased to execute another strategic deal
releasing capital to reinvest into new high growth landmark stores.
We continue to reallocate capital and have recently opened two
landmark stores and our development pipeline currently stands at 9
with further sites under consideration.
This is a busy and exciting time for Lok'nStore as we grow and
enhance the efficiency and quality of our portfolio creating value
for our shareholders without significantly increasing risk."
-Ends-
Enquiries:
Lok'nStore
Andrew Jacobs, CEO
Ray Davies, Finance Director 01252 521010
finnCap Ltd
Julian Blunt/Giles Rolls, Corporate Finance
Alice Lane, ECM 020 7220 0500
Camarco
Billy Clegg/Tom Huddart 020 3757 4980
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
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END
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