Lok'nStore signs management contracts on two new 'landmark' sites

Self-storage company Lok'nStore signed new management contracts, it announced on Monday, in a bid to develop and operate two new “landmark” stores in highly prominent locations in Exeter, Devon and Ipswich, Suffolk.

The AIM-traded firm said it would develop the two sites as purpose-built landmark stores.

It said the “eye-catching” buildings with “distinctive” orange Lok'nStore branding and signage would create highly visible landmarks, which the board said continued to be a big contributor to driving new business.

Building work would follow completion of all relevant planning matters, and would be funded by the respective owners of the properties, with store openings scheduled for 2018.

“These excellent new locations add to the recent rapid growth in our pipeline of stores,” said CEO Andrew Jacobs.

“Our objective remains to grow by both acquiring more sites to build new landmark stores for Lok'nStore's own balance sheet and to increase the number of stores we manage under the Lok'nStore brand for third parties.”

When developed, Lok’nStore said the two stores would add around 100,200 square feet of trading space, taking the current pipeline of five stores to 253,500 square feet, adding 19.6% to the existing trading space of 1.29 million square feet after the opening of the Broadstairs store in May.

The two stores would increase the managed store portfolio by 33.2% and bring the total number of managed stores to 10 out of a total of 31 stores.

Lok'nStore said it would generate a return on the stores by charging management fees for the acquisition, branding and operation of the stores based on revenue and profits.

It said the projects continued to fulfil the board’s strategy of expanding the operating footprint of the business by developing both managed stores and owned stores while maintaining a strong balance sheet.

The sites added to the company’s pipeline of four new landmark stores announced last year, of which Broadstairs opened in May 2017, and Hemel Hempstead, Gillingham and Wellingborough remained on target to open in late 2017 and in Spring 2018 respectively.

All were said to be in prominent retail locations with little established competition.

“In continuing to execute our strategy we will deliver a predictable growth in dividends for investors from an increasing number of stores underpinned by a strong asset base and conservatively geared balance sheet,” Andrew Jacobs added.