New Aldershot Joint Venture Store

RNS Number : 0395F

Lok'n Store Group PLC

11 June 2012

 



11 June 2012

Lok'nStore Group plc

("Lok'nStore" or "the Company")

New Aldershot Joint Venture Store

The Board of Lok'nStore Group plc is pleased to announce the signing of a joint venture agreement to develop and operate a new self-storage centre in Aldershot, Hampshire. It is the second store management contract for the Company and will be the first store managed for third party investors under the Lok'nStore brand.

Lok'nStore will contribute approximately £2.5 million of the estimated £4.5 million total cost of development, and will manage the building and the operation of the store. The other investors, including the original land owner Mark Shaw, Chairman of the market leading investment fund management house Tritax Group, will invest the remaining £2 million.

The long lease for the property will be held by the joint venture company and the property already has the benefit of a planning permission for a self-storage facility. The new store will be located in a prominent location on the main Aldershot roundabout above the M331 with significant levels of passing traffic, and is expected to commence trading in 2013. The investors were also attracted by the tax benefits of investing in self-storage.

Lok'nStore will generate a return by charging the joint venture company a management fee for the construction, operation and branding of the store. This project is consistent with Lok'nStore's stated strategy of expanding the operating footprint of the business while maintaining its strong balance sheet. 

Andrew Jacobs, Chief Executive of Lok'nStore, said, "The announcement of this exciting new joint venture follows our recently announced partnership with Lidl in Maidenhead, both of which are expected to commence trading in 2013. The pioneering approach to funding the development further demonstrates our commitment to developing new stores while minimising capital outlay. It also increases the number of stores we manage for third parties, including developing joint ventures with specialist self-storage investors."

Mark Shaw said, "This joint venture with Lok'nStore has unlocked this attractive site for self-storage and the innovative financial structure has enabled us to optimise the tax benefits."

Ends

For further information: Lok'nStore	Tel: [phone]
Andrew Jacobs, CEO
Ray Davies, Finance Director
FTI Consulting	Tel: [phone]
Billy Clegg/ Oliver Winters/ Latika Shah
Panmure Gordon & Co	Tel: [phone]
Dominic Morley/Fred Walsh

Notes to editors:

Lok'nStore

Lok'nStore recently announced record turnover and EBITDA profit for the first six months of its financial year. Its new Maidenhead store is to be developed in a JV with Lidl will open in the first half of 2013, and its new banking facility signed last October provides headroom for further growth. 

Lok'nStore is a beneficiary of the harmonisation of VAT for the self-storage industry announced in the budget.

Lok'nStore's ability to keep opening new stores with a reduced capital outlay combined with the headroom on its new banking facility gives it a strong competitive advantage at a time when its competitors are constrained by their balance sheets. Lok'nStore recently fixed the interest rate on 70% of its debt at 3.525%.

Tritax

Tritax is a market leading investment fund management house focused on acquiring and managing commercial property investments for high net worth private individuals, wealth managers and institutions. Since 1995 Tritax has acquired and developed circa £1.7bn of property assets and currently manage over 50 investment vehicles, including onshore and offshore unit trusts, limited partnerships, companies, LLPs and syndicates.

 

END

 

 

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