Monday November 26th 2007
British self-storage firm Big Yellow said on Monday it had struck a 150 million pounds ($308.4 million) partnership with funds managed by Pramerica Real Estate to develop up to 25 stores in Britain. Big Yellow and Pramerica, the property investment and advisory arm of Prudential Financial Inc are investing up to 25 million pounds and 50 million pounds respectively in the partnership to develop stores in the Midlands, the north of England and Scotland, it said in a statement.
In addition, Royal Bank of Scotland has agreed to provide 75 million pounds of investment and development funding to the joint venture. Big Yellow shares were up 4.4 percent to 459.5 pence at 0847. Under terms of the deal, Big Yellow -- which lets storage space to corporate and individual customers -- will sell five of its existing development sites and one Big Yellow branch in the northern English city of Leeds to the partnership for a consideration of 20.3 million pounds.
Proceeds from the sale would be used to further the group's expansion in southern England, the company statement read. Big Yellow has an option to purchase the assets contained within the partnership or Pramerica's interest in the venture from March 2013. As of June 30, Pramerica Real Estate Investors managed $39.6 billion of gross assets on behalf of more than 300 clients worldwide. Big Yellow listed on London's AIM market in May 2000, moving to the Official List of the London Stock Exchange in 2002. It operates from 45 stores, 44 in London and the South, and one in Leeds, with a further 27 stores in development.
Coutesy of Reuters