TIDMSAFE
RNS Number : 7558R
Safestore Holdings plc
25 September 2017
25 September 2017
Safestore Holdings plc ("Safestore" or "the Group")
Acquisition of Stork Self Storage (Holdings) Limited (trading as
Alligator Self Storage) for GBP56m
Earnings accretive from completion, further consolidation of UK
market
Highlights
-- Exchanged contracts to acquire Stork Self Storage (Holdings)
Limited ("SSSHL"), the eleventh largest self-storage portfolio in
the UK with 12 stores.
-- Consideration of GBP56m (subject to a potential working
capital adjustment) to be funded from existing Group debt
facilities
-- At the consideration price, the SSSHL portfolio has an
implied first year net operating income yield of c.7.7%(2)
-- Expected to be earnings accretive from completion of the acquisition
-- Acquisition expands Safestore's portfolio to 146 stores,
consolidating its position as the leading self-storage operator in
the UK(1)
Frederic Vecchioli, Chief Executive Officer commented:
"Over the past fifteen months, Safestore has cemented its market
leading position in the UK, investing GBP100m in two earnings
accretive acquisitions, and opening 4 new sites with a further 2
stores in the pipeline. These transactions have supplemented the
organic growth being delivered by the existing business.
With the acquisition of Alligator Self Storage we have acquired
a complementary portfolio of largely freehold stores across the UK
which demonstrates our ability to source, fund and conclude
significant acquisitions.
Following this acquisition, Safestore will have a total of 146
stores, of which 120 are in the UK and 26 in Paris. When combined
with our acquisition and development activity in Paris, we are
continuing the consolidation of our leading positions in both
markets."
Acquisition of SSSHL
Safestore is pleased to announce it has exchanged contracts with
a company controlled by funds managed or advised by York Capital
Management to acquire, Stork Self Storage (Holdings) Limited
("SSSHL") trading as Alligator Self Storage (the "Acquisition").
The consideration of GBP56.0m (subject to customary working capital
adjustment) will be payable in cash on completion of the
Acquisition, expected to be 1 November 2017 ("Completion").
SSSHL is the eleventh largest self-storage portfolio in the UK
with 12 stores with a maximum lettable area of 563,000 sq ft.
SSSHL's stores, which are geographically complementary to the
existing estate, are located in London (Camden), the South East of
the UK (Fareham, Farnham, Luton, Southampton and Winchester),
Birmingham (three stores), Bolton, Bristol and Nottingham. Ten of
the SSSHL stores are freehold or long leasehold and two are
leasehold stores with an average remaining lease length of 15.4
years.
The Acquisition will reinforce Safestore's position as the UK's
largest self storage group by number of sites with a combined total
of 120 stores, 67 of which will be in London and the South East.
The SSSHL portfolio is currently operating at 68% occupancy (of
maximum lettable area).
Pro forma EBITDA after rent is currently c. GBP4.3m per annum on
turnover of GBP7.5m. At the consideration price, the SSSHL
portfolio has an implied first year net operating income yield of
c.7.7%.
The SSSHL business, which had pro forma gross assets of GBP56.4m
at 30 September 2016, will be acquired on a debt and cash free
basis. The Acquisition will be funded from the Group's existing
debt facilities, with the Group's GBP60m accordion facility
converted into a committed revolving credit facility. On a pro
forma basis, the Group's Loan to Value ratio post completion of the
Acquisition would be c.35% compared to 32% at 30 April 2017 (as
adjusted on a pro forma basis for our May 2017 refinancing).
The Acquisition is expected to be immediately accretive to Group
earnings per share from completion and will support the Group's
future dividend capacity.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014
Ends
1 - By Maximum Lettable Area and Number of Stores
2 - Based on forecast EBITDA for the year ended 30 September
2017.
Enquiries
Safestore Holdings plc
Frederic Vecchioli, Chief Executive Officer
Andy Jones, Chief Financial Officer 020 8732 1500
www.safestore.com
Instinctif Partners
Mark Reed
Guy Scarborough 020 7457 2020
Notes to editors:
-- Safestore, including SSSHL, is the UK's largest self-storage
group with 146 stores, comprising 120 wholly owned stores in the UK
(including 67 in London and the South East with the remainder in
key metropolitan areas such as Manchester, Birmingham, Glasgow,
Edinburgh, Liverpool and Bristol) and 26 wholly owned stores in the
Paris region.
-- Safestore operates more self-storage sites inside the M25 and
in central Paris than any competitor providing more proximity to
customers in the wealthiest and densest UK and French markets.
-- Safestore was founded in the UK in 1998. It acquired the
French business "Une Pièce en Plus" ("UPP") in 2004 which was
founded in 1998 by the current Safestore Group CEO Frederic
Vecchioli.
-- Safestore has been listed on the London Stock Exchange since
2007. It entered the FTSE 250 index in October 2015.
-- The Group provides storage to around 55,000 personal and
business customers (excluding SSSHL)
-- As at 31 July 2017, Safestore (excluding SSSHL) had a maximum
lettable area ("MLA") of 5.742 million sq ft (excluding the
expansion pipeline stores) of which 4.196 million sq ft was
occupied.
-- Safestore employs around 600 people in the UK and France (excluding SSSHL)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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