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Safestore Snap up Alligator Self Storage

26th September 2017

FTSE-250 listed self storage company Safestore Holdings PLC announced yesterday that it has bought the company behind the Alligator Self Storage chain for GBP56.0 million.

Stork Self Storage Holdings Ltd, trading under the Alligator brand, is the eleventh largest self storage company in the UK.

Combined with the 12 Alligator stores, which cover 563,000 square feet and are operating at 68% occupancy, the Safestore portfolio will boast a total of 146 stores which consolidates its position as the "leading self-storage operator in the UK", the company said. Of the 146 stores 26 are located in Paris, France.

The GBP56.0 million acquisition price will be funded using Safestore existing debt facilities and implies net operating income yield for the acquisition is 7.7%.

Stork's pro-forma earnings before interest, tax, depreciation and amortisation after rent was GBP4.3 million per annum on revenue of GBP7.5 million, Safestore said.

The acquisition was said to be expected to be "immediately accretive" to Safestore's earnings from completion and will "support" the company's future dividend capacity, it said.

Safestore Chief Executive Frederic Vecchioli said that acquisitions over the last 15 months had "cemented" its market leader position in the UK.

In July 2016 Safestore acquired Space Maker Ltd for GBP44.4 million.

The company added it was opening four new sites with a further two in the pipeline. Together the acquisitions and store openings "supplemented the organic growth being delivered by the existing business", Vecchioli said.

"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", Vecchioli added.

Vecchioli added that when combined with its acquisition and development activity in Paris, Safestore are "continuing the consolidation of our leading positions in both markets."

Shares in Safestore closed up 0.5% at 399.37 on Monday, up 14% year to date.