Lok'nStore buys Eastbourne site with share placing funds

Self-storage operator Lok'nStore Group announced the first deployment of capital from its recent placing on Monday, as it acquired a new 60,000 square-foot freehold ‘landmark’ site in Eastbourne, Sussex.

The AIM-traded firm said the move was the beginning of its expansion plans, following the significant injection of £19.8m in funding.

It said unconditional contracts for the new site had been exchanged, with the Eastbourne location providing an opportunity for the company to establish a presence in the Sussex region, catering to growing demand.

In addition to the new acquisition, Lok'nStore said it was continuing to progress with ongoing store development projects at Staines, Basildon, and Kettering.

“Following our share placing earlier this month which provided £19.8m of funding, we are pleased to announce the purchase of a strategic landmark freehold site in Eastbourne, Sussex,” said chair Andrew Jacobs.

“Revenue momentum continues to be strong in the second half, and we continue to deliver on our strategy to open more new stores in the under-supplied UK self-storage market.”

Jacobs noted the company had opened two stores in the current financial year, and was onsite at a further three stores.

“These stores will add considerable momentum to earnings growth in the coming years.”

At 1608 BST, shares in Lok’nStore Group were down 1.57% at 775.6p.

Reporting by Josh White for Sharecast.com.