Lok'nStore buys two new freehold sites

Self-storage company Lok'nStore has announced the acquisition of two new freehold sites, bringing its total secured pipeline to nine landmark stores.

The group has acquired a property on Penarth Road in Cardiff and a 2.2 acre development site facing the busy A10 and in the vicinity of a major retail park in Cheshunt, Hertfordshire.

The refurbishment of the existing building and fit out of the store in Cardiff, at a total capital expenditure of around £5m, will begin shortly and the store will be open in early 2019 delivering around 45,000 lettable feet.

On the Cheshunt site, Lok'nStore is aiming to develop a 60,000 sq. ft. landmark store. Building work will commence in autumn 2019 following completion of all relevant planning matters and the net capital expenditure of the project will be between £7m and £10m. The store will open in late 2020.

Both stores will be funded from cash flow and existing bank facilities.

Chief executive officer Andrew Jacobs said: "These two new landmark locations add to the recent rapid growth in our pipeline of stores. We are delivering our objective of growing rapidly by acquiring sites to develop new landmark stores from the balance sheet and to increase the number of stores we manage under the Lok'nStore brand for third parties.

"In executing our strategy, we are producing predictable growth in dividends for investors from an increasing number of stores underpinned by an increasing asset base and strong balance sheet."

At 1450 BST, the shares were up 1.9% to 440p.